220 South 5th Street, Philadelphia, PA 19106

220-250 South 5th Street is a rare covered land opportunity located in Society Hill, one of Philadelphia's most prestigious, affluent, and supply-constrained residential neighborhoods. Situated on approximately 37,535 square feet of land, the Property is currently improved with a 16,142-square-foot commercial building occupied by Philadelphia Sport Club. This fully operational fitness facility features a swimming pool, sun deck, tennis courts, a gymnasium, and related amenities. Because the Property is subject to an active lease, it provides reliable, immediate cash flow, enabling an investor to mitigate downside risk and offset carrying costs while actively evaluating future redevelopment pathways.

Given its rare scale, irreplaceable location, and flexible underlying zoning, the site presents a generational opportunity for a developer to transform a landmark block within a highly desirable urban enclave. Preliminary zoning analysis indicates an efficient yield of approximately 22 to 26 luxury townhomes through the introduction of an interior private drive configuration, a design that maximizes the site's unique depth while maintaining strict compliance with applicable frontage requirements. Beyond a townhome master plan, additional execution strategies include a mixed-use project, a luxury condominium development, or a higher-density multifamily construction, each subject to standard municipal approvals. Future residents will benefit from immediate proximity to Society Hill, Old City, Washington Square, and Center City, positioning the development at the epicenter of Philadelphia's strongest residential demographics, highest historical home values, and premier lifestyle amenities.

A defining benefit of this offering is the asset's attractive capital structure, which allows an incoming buyer to assume highly competitive, seasoned debt and bypass current capital market volatility. The Property is encumbered by an assumable StanCorp loan with an outstanding balance of approximately $3.86 million (as of June 1, 2026). This debt bears interest at a favorable 5.37%, with the next rate reset scheduled for November 30, 2027, and a final maturity on December 1, 2042. With a monthly principal and interest payment of approximately $29,846, this debt yield provides a meaningful arbitrage opportunity relative to today's prevailing market financing alternatives.

220-250 South 5th Street offers a rare combination of immediate, de-risked cash flow, multiple institutional redevelopment pathways, and compelling long-term value creation potential.