We can’t be the only ones wondering what’s going on with the long awaited but yet uninitiated project at the former Wendy’s on Walnut Street, right? Back in 2021 we covered the plans for a 198 unit building at 1101 Walnut St., which was actually a revision from an earlier proposal for a taller yet slimmer tower with only 111 apartments. But in 2025, these plans still seems a farther from coming to fruition than they did a few years ago.
By 2022, the former fast food restaurant and two adjacent buildings had largely been demolished, and we were already envisioning how scores of new residents could help reinvigorate this pocket near Market East.
The last time we visited the property, in June of 2023, the site had been cleared. Alas, nothing has happened here in the couple years since then. Perhaps most worrisome, the commercial building permit for this project has expired, so any project that moves forward here will need a new application submitted and approved before it can move forward.
This is costly and time consuming for any project, but it’s especially painful here, as the previous building permit was approved under the terms of the old 10-year tax abatement and the building would have been 100% exempt from property taxes for ten years. A new building permit would only be eligible for a revised tax abatement, which steps down by 10% every year. This will result in an added tax burden of several million dollars over the first ten years after the building is completed, which will have a material impact on the feasibility of the project. Combined with the high interest rates we continue to see, it’s quite possible that this project doesn’t pencil in the current environment.
So when (or if) we can expect activity to start up here isn’t exactly clear. While there’s certainly been some impressive buildings going up nearby recently, the decision by the Sixers to stay in South Philly has led to a bit of reflection on what might be in store for Market East and Washington Square West. We’ve been musing about the history and redevelopment potential of this parcel since 2018, so let’s just hope we’re not still talking about the prospects for new construction here in 2028. The last thing this pocket of Center City needs is for this prominent corner of Walnut Street to stay unused indefinitely,