SEPTA has purchased a 136,000-square-foot warehouse at 10551 Decatur Road near Northeast Philadelphia Airport for $11.25 million, according to city property records.
The transit agency had leased 118,000 square feet of the building since 2019, using it as a supply chain warehouse.
SEPTA plans to maintain the facility for this purpose, though a spokesperson declined further comment, citing “legal matters.”
The property, sitting on 6.24 acres and constructed in 1995, is conveniently located between I-95 and Roosevelt Boulevard.
The previous owner, Drummond Decatur and State Properties LLC, acquired it for $17.1 million in 2012.
Despite its assessed value of $10.27 million, the property fetched a lower sale price compared to its initial purchase, reflecting ongoing shifts in the Northeast Philadelphia industrial market.
This area has seen heightened real estate activity recently.
A 305,000-square-foot distribution center nearby was sold for $33.7 million, marking a tenfold increase over its purchase price eight years ago.
Investment giant KKR also made significant acquisitions, spending $83.5 million and $46.2 million on two large warehouse properties.
SEPTA’s purchase comes at a challenging time for the agency. CEO and General Manager Leslie Richards recently announced her resignation, ending her nearly five-year tenure on November 29.
Chief Operating Officer Scott Sauer will serve as interim general manager while a nationwide search for her replacement is conducted.
The agency also faces a $240 million annual budget shortfall as federal pandemic relief funds dwindle.
Ridership remains at just 74% of pre-pandemic levels, and a fare hike—the first in seven years—will take effect on December 1.
Amid these challenges, SEPTA is bracing for potential labor unrest.
The Transit Workers Union Local 234, representing around 5,000 employees, has threatened to strike, citing safety concerns, wage disputes, and dissatisfaction with proposed healthcare changes.
Although crime on the system has declined this year, high-profile assaults have left many workers uneasy.
“SEPTA is insisting that any raise we get must be paid with cost savings to our health care plan,” the union said in a recent newsletter, pointing to last year’s 20% raises for top management as evidence of inequity.
The agency’s struggles reflect broader challenges in Philadelphia.
Low SEPTA ridership contributes to reduced foot traffic and office occupancy in Center City, where office usage remains at 81% of 2019 levels.
Proposed developments like a new 76ers arena near Jefferson Station offer hope for revitalization, but SEPTA’s role in that vision hinges on its ability to overcome its current hurdles.
