Philadelphia, January 6, 2026
The former GlaxoSmithKline building at Philadelphia’s Navy Yard has been sold for $52 million, a significant drop from its previous purchase price of $130.5 million. This 207,779-square-foot property highlights the changing dynamics and potential challenges in the local real estate market. The building, which achieved the first double LEED Platinum rating in Philadelphia, has been vacant since GSK relocated its headquarters. Future plans for the property and the identity of the new buyer remain undisclosed, raising questions about the Navy Yard’s redevelopment efforts.
Philadelphia, PA
Former GSK Building at Navy Yard Sells for $52 Million
Philadelphia’s Navy Yard has welcomed a notable real estate transaction with the sale of the former GlaxoSmithKline (GSK) office building for $52 million. This 207,779-square-foot property, situated at 5 Crescent Drive, was previously owned by Korea Investment Management Co. Ltd. (KIM), which had acquired it in 2018 for $130.5 million. The recent sale signifies a marked decrease in value, indicative of changing dynamics in the local real estate market. Details concerning the identity of the buyer remain undisclosed, and plans for the building are yet to be clarified. This transaction is a key moment in the Navy Yard’s evolving real estate landscape, illustrating ongoing shifts in property values and ownership.
Background of the Property
The property at 5 Crescent Drive was built in 2013 as a custom office designed for GSK. The building, crafted by Robert A.M. Stern, notably achieved the first double LEED Platinum rating in Philadelphia from the U.S. Green Building Council, highlighting its commitment to sustainable construction. GSK occupied this space under a 15.5-year lease that was set to continue until 2028. However, in October 2021, GSK decided to relocate its U.S. headquarters to a smaller location in the FMC Tower, leading to the building’s vacancy. Following this, the property entered foreclosure proceedings due to accumulated mortgage debt, which culminated in its recent sheriff’s sale. The dramatic drop in the building’s value from its original purchase price to the recent sale price is reflective of broader trends affecting the real estate market and signals potential challenges within the Navy Yard’s commercial property sector.
Implications for the Navy Yard
The sale of the former GSK building represents a pivotal event for the Navy Yard, a historical shipyard that has evolved into an industrial park in Philadelphia. The Navy Yard has been undergoing substantial redevelopment efforts with aspirations to create a thriving business campus capable of generating thousands of job opportunities and enticing private investments. The recent sale and resulting vacancy may significantly influence future strategies for development and investment in the Navy Yard. Stakeholders are closely observing these changes to evaluate their potential impact on the area’s economic growth and revitalization initiatives.
Frequently Asked Questions (FAQ)
What is the significance of the recent sale of the former GSK building at the Navy Yard?
The sale of the former GSK building for $52 million marks a significant development in the Navy Yard’s real estate landscape, reflecting shifts in property values and ownership within the area.
Who was the previous owner of the building, and what was the purchase price?
The building was previously owned by Korea Investment Management Co. Ltd. (KIM), which acquired it in 2018 for $130.5 million.
What are the future plans for the building?
The buyer’s identity has not been disclosed, and the future plans for the building remain unclear.
How does this sale impact the Navy Yard’s redevelopment efforts?
The sale may influence future development strategies and investment decisions within the Navy Yard, potentially affecting the area’s economic growth and revitalization efforts.
Key Features of the Former GSK Building
| Feature | Details |
|---|---|
| Location | 5 Crescent Drive, Philadelphia’s Navy Yard |
| Size | 207,779 square feet |
| Construction Year | 2013 |
| Original Owner | Korea Investment Management Co. Ltd. (KIM) |
| Original Purchase Price | $130.5 million |
| Recent Sale Price | $52 million |
| Previous Tenant | GlaxoSmithKline (GSK) |
| Building Design | Designed by Robert A.M. Stern |
| Environmental Certification | First double LEED Platinum rating in Philadelphia |
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Author: STAFF HERE PHILADELPHIA WRITER
The PHILADELPHIA STAFF WRITER represents the experienced team at HEREPhiladelphia.com, your go-to source for actionable local news and information in Philadelphia, Philadelphia County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as Mummers Parade, Philadelphia Flower Show, and Thanksgiving Day Parade. Our coverage extends to key organizations like the Greater Philadelphia Chamber of Commerce and United Way of Greater Philadelphia, plus leading businesses in telecommunications, food services, and healthcare that power the local economy such as Comcast, Aramark, and Children's Hospital of Philadelphia. As part of the broader HERE network, we provide comprehensive, credible insights into Pennsylvania's dynamic landscape.
