### TF Cornerstone Gains Full Control of Wanamaker Building in Philadelphia

In a significant development for Center City Philadelphia, New York-based developer TF Cornerstone has acquired full control of the historic Wanamaker building following a foreclosure auction held on Tuesday. Known for their expertise in adapting historic structures, the company had previously acquired the three-floor retail section of the building in 2019, a space that was occupied by Macy's until earlier this year.

During the auction, TF Cornerstone secured control over the building’s eight floors of office space, as well as a 660-car underground parking garage. The company has ambitious plans for the Wanamaker building: They intend to create 600 loft-style apartments on floors 6 through 12, while maintaining office space on the fourth and fifth floors. The Crystal Tea Room, located on the ninth floor, will continue to operate as an event space.

The former Macy's retail area will be transformed into a two-floor retail space, described by the company as "well-curated." The Grand Court will remain open to the public, and the iconic Wanamaker Organ will continue to be a feature of the space. Additionally, the third floor, with its impressive 24-foot-tall ceilings, is slated to house cultural uses.

Construction for the redevelopment is set to commence in the first quarter of 2026, with an expected completion timeline of two years. According to TF Cornerstone, some office spaces and potentially the Crystal Tea Room will remain accessible during the construction period.

Jake Elghanayan, senior vice president of TF Cornerstone, expressed the company’s excitement about the project, stating, "We feel privileged to be given the opportunity to reimagine this iconic building in a way that respects its historic integrity and adds to the vibrancy of the Center City community."

TF Cornerstone boasts a robust portfolio in New York, owning and operating 12,000 residential units. This project marks the company's inaugural venture in Philadelphia. Their experience in historic preservation, particularly in cities like New York and Washington, D.C., positions them well for this ambitious redevelopment.

The company’s acquisition journey began in 2019 with the $40 million purchase of the retail section. They later acquired the debt for the office portion last fall, following a foreclosure by the previous owner, Rubenstein Partners. Rubenstein Partners had seen a 90% office occupancy pre-pandemic but struggled post-COVID-19, leading to an increased vacancy rate and a drop in the building's value.

Tom Weitzel of Jones Lang LaSalle highlighted the benefits of the planned conversion, noting its positive impact on public safety and economic activity in the area. The building’s flexible zoning and a 10-year property tax abatement for redevelopment are additional advantages for TF Cornerstone.

Despite Macy's departure, TF Cornerstone has reassured preservationists that the Wanamaker Organ will remain intact, and the Grand Court will stay as a public space. The future of other traditional elements, such as the light show and the Dickens Christmas Village, is still uncertain.

Supporters of the project, including Center City boosters, see the redevelopment as crucial for the area's revitalization, especially following the cancellation of the Philadelphia 76ers' plans for a basketball arena on East Market Street. Prema Katari Gupta, president of the Center City District, emphasized that the redevelopment would bring new residents, vibrancy, and economic activity to the corridor.

In summary, TF Cornerstone's plans for the Wanamaker building promise a blend of residential, retail, and cultural spaces that aim to rejuvenate a historic landmark and invigorate the Center City community.