IKEA Breaks Ground For New Store In Heart Of Philadelphia

Furniture World Magazine

IKEA officially broke ground at the site of a new store to open next Summer [2004] within the City of Philadelphia. The City rezoned the land in December 2002 to allow for construction of the IKEA store, and surrounding retail - now named 'Columbus Commons' - to be developed by The Goldenberg Group. The site of the future IKEA Philadelphia store is located at a former CSX intermodal rail yard, on the northwest corner of Columbus Boulevard (formerly Delaware Avenue) and Snyder Avenue. Access would be via the Oregon and Penn's Landing exits from I-95. The store would be approximately 310,000 square feet and will occupy approximately 21 acres. Besides jobs created during the construction phase, more than 500 coworkers will join the IKEA family when the new store opens. Also, IKEA Philadelphia would provide significant annual tax revenue benefits to the City. "This IKEA store is the first of our stores within a major city in the U.S.," said Patrick Smith, IKEA real estate manager. "We received many expressions of support from local residents and community groups and are pleased to soon become their neighbor. We are excited about residents in this part of Philadelphia benefiting from the jobs, redevelopment and tax revenue IKEA brings to the community." The 600,000 square-foot Columbus Commons runs approximately where Columbus Boulevard and I-95 cross Snyder, adjacent to 300,000 square-foot Snyder Plaza, built in the mid-1980s by the Goldenberg Group and owned and managed by the company today. Columbus Commons is expected to attract additional national retail stores and restaurants including a large bedding and bath shop, and several national restaurant chains. Already, Lowe's Home Improvement Warehouse has committed to the site. Robert W. Freedman, senior vice president and general counsel of The Goldenberg Group adds, "this project alone will bring in more than $4.2 million in tax revenue annually. More than 1,000 new, permanent jobs will be created, many to be filled by the nearby residents of South Philadelphia. And another 346 full-time equivalent jobs will be created during construction of Columbus Commons." Besides this location in the heart of Philadelphia, other U.S. IKEA stores anticipated to open in 2004 include: Bloomington, MN; Dublin, CA; New Haven, CT; Somerville, MA and a relocation in Houston, TX. IKEA has more than 180 stores in 31 countries, including 15 stores I the United States and ten stores in Canada. In January 2003, the company began an aggressive North American expansion effort that includes 5 new stores a year for the next ten years. This plan will balance increasing the presence of IKEA in existing markets withgradual entry into newer markets.The first IKEA store in the U.S. (opened in Plymouth Meeting, PA in 1985) was relocated to Conshohocken, PA this January, but its North American offices remain based in Plymouth Meeting, PA. Since its founding in 1943, IKEA has offered a wide range of home furnishings and accessories of good design and function, at low prices so the majority of the people can afford them. IKEA is recognized as a socially responsible company that supports initiatives and causes that benefit children and the environment. To visit the IKEA Web Site, please go to http://www.ikea-usa.com. The Goldenberg Group is a multifaceted real estate development company specializing in the development, leasing, construction and management of retail, commercial and mixed-use properties. It owns and manages more than 3.1 million square feet of space, which includes "power" shopping centers - Metroplex in Plymouth Meeting, Bensalem Crossing, Courts I and II in Deptford, the Court at Oxford Valley, and Red Rose Commons in Lancaster. The Goldenberg Group also has an additional 1.5 million square feet in various stages of construction and planning that include other urban projects, and community development projects in the city and region.