Developer plans to create 600 loft apartments in the Wanamaker building, located above the former Macy’s space in New York.

In a significant development for Philadelphia’s real estate landscape, New York-based developer TF Cornerstone gained full control of the historic Wanamaker building at a foreclosure auction held on Tuesday. The property, a cornerstone of the city’s architectural heritage, was known for its longstanding association with Macy’s, which shuttered its operations at the site earlier this year.

TF Cornerstone has a reputation for repurposing historic structures and previously acquired the building’s three-floor retail section for million in 2019. At the recent auction, the company secured rights to the eight floors of office space situated above the retail section along with a substantial underground parking garage, which accommodates 660 vehicles.

Plans for the Wanamaker building involve transforming floors six through twelve into approximately 600 loft-style apartments, while retaining the fourth and fifth floors for office use. The crystal-framed Crystal Tea Room on the ninth floor will continue to serve as an event space, ensuring a blend of residential and commercial activities.

The redevelopment vision articulated by TF Cornerstone includes plans for “well-curated” retail on the former Macy’s floors. Additionally, the Grand Court will remain accessible to the public, and the iconic Wanamaker Organ will continue to function, preserving an essential part of the building’s cultural legacy. The third floor is earmarked for potential cultural uses, featuring 24-foot-tall ceilings that underscore the historical significance of the space.

Construction is set to commence in the first quarter of 2026, with an anticipated two-year timeline for completion. During this period, some office spaces and possibly the Crystal Tea Room will be available for public access, allowing the community to engage with the building even amid redevelopments.

TF Cornerstone has a strong footing in New York’s competitive property market, managing approximately 12,000 residential units. The Wanamaker project marks the company’s inaugural venture in Philadelphia. The building, which spans nearly 1.4 million square feet, represents a crucial opportunity for revitalization in a region grappling with high vacancy rates, particularly in its office spaces since the onset of the COVID-19 pandemic.

The Wanamaker building is subject to flexible zoning regulations, allowing the new owners to capitalize on a 10-year property tax abatement intended for redevelopment efforts. Although the abatement policy has faced scrutiny, TF Cornerstone is poised to leverage these incentives as they reinvigorate the property.

While the future of beloved holiday traditions, including the annual light show and Dickens Christmas Village, remains uncertain, the developer has assured preservationists that the Wanamaker Organ will remain intact. The Grand Court will undergo restoration and maintain its status as a public space, reinforcing the Wanamaker’s historical role as “a cathedral of commerce” in Philadelphia.

TF Cornerstone anticipates hosting a series of engaging events in the former Macy’s spaces later this year, further enhancing community involvement as this historic building embarks on its next chapter.