A Wilmington developer is moving in on two of downtown Kennett Square’s best-known State Street office buildings, with a plan to turn one into roughly 60 apartments while keeping the other focused on office and medical tenants. The deal would tuck new rental housing right into the borough’s compact downtown and serves as another vote of confidence in Kennett Square’s economic momentum.
The properties at 101 E. State St. and 128 E. State St. are being acquired by 9th Street Development Co. The firm is paying about $34 million for the pair, with 128 E. State St. slated for conversion into around 60 apartments and 101 E. State St. remaining in office and medical use, according to the Philadelphia Business Journal.
Buildings and brokers
Marketing materials for the two addresses highlight first-floor retail, multiple floors of office and medical suites, a covered parking garage, and tenant amenities, features that help make a downtown residential conversion pencil out. JLL brokers Blaise Fletcher and Jamie Vari are listed as leasing contacts for the properties, and the 101 E. State St. listing includes the property brochure and leasing details, according to LoopNet.
Why developers are betting on Kennett Square
In recent years, local investors and civic initiatives have helped usher in a run of restaurant, hotel, and housing projects in the borough, reshaping demand along State Street and around Longwood Gardens. That broader redevelopment wave, including private groups putting money into downtown amenities, has turned Kennett Square into a target for mixed-use conversions, as reported by The Philadelphia Inquirer.
Next steps and timeline
Market reporting indicates the developer expects to close on the purchase next month, then pivot into design, permitting, and construction for the residential conversion while JLL works to market any remaining office and retail space. The exact schedule and scope will depend on borough planning approvals and any required zoning or building permits, according to Bisnow…