PHILADELPHIA, PA — Ensemble Investments, LLC (Ensemble) and Mosaic Development Partners JV (Mosaic), in partnership with Korman Communities (Korman), broke ground on AVE Navy Yard, a $285M mixed-use development in the Philadelphia Navy Yard. Opening in 2025, the two-building complex will include 614 residential apartments as well as extensive amenities and retail. African American- and female-owned Basis Investment Group led the equity financing for the project, which included $100M+ in limited partner (LP) equity and preferred equity investments.
“Today a new neighborhood begins to rise in the city of Philadelphia,” said Greg Reaves, co-founder and CEO of Mosaic. “AVE Navy Yard marks the start of the Navy Yard’s transformation from a successful employment center to a vibrant mixed-used community and continues its trajectory as the most successful redevelopment of former military base in the nation.”
AVE Navy Yard includes luxury, market-rate and affordable apartments, as well as flexible-stay furnished apartments. The complex will offer more than 75,000 s/f of private indoor and outdoor amenity spaces and 25,000 s/f of retail across two buildings. The buildings will be situated on the newly constructed Chapel Plaza, a 35,000 s/f public space designed by Olin, which will include outdoor dining, lounge seating and performance areas.
AVE Navy Yard will provide the first residential offering on the campus since the base closure in 1996. PIDC, the city’s public-private economic development corporation, which has responsibility for and oversees the redevelopment of the Navy Yard, has worked over the past two decades to create a vibrant and diverse campus that is home to more than 150 businesses and 15,000 employees.
“When creating a new neighborhood, we must be intentional in our approach to ensure that it is sustainable and representative of all Philadelphians,” said Brian Cohen, managing director, Ensemble. “This is a robust corporate and life science campus with employers, retailer and now residents coming together to create an inclusive and authentic community, which has been at the forefront of our vision from Day One.”
The project is the continuation of Ensemble/Mosaic’s Impact Strategy in support of diversity, equity and inclusion (DEI) at every level of its 15-year, $6B redevelopment effort. This includes the Ensemble/Mosaic joint venture between Ensemble and Mosaic, which is an MBE firm with a 22.5% ownership in the partnership, as well as:
• Minority- and women-owned Basis Investment Group led the entire equity financing for the residences, which included $100M+ in limited partner (LP) equity and preferred equity investments.
• 50% ($4.3M) of the design and engineering of the project is provided by MWBEs
• 45% ($90M) of the construction spend will be committed to MWBE contractors
• 25% of the retail space will be reserved for minority and woman-owned businesses
• 2% of annual net cash flow will be donated to the Ensemble/Mosaic Navy Yard Building Better Foundation, supporting the professional development and economic empowerment of minorities and women
“This project, representing minority involvement at all levels including its equity investment, is a blueprint for real estate developments across the United States and an unprecedented opportunity for Basis to further shape the skylines of the communities in which it operates,” said Tammy K. Jones, CEO & co-founder of Basis Investment Group.
“I greatly appreciate Ensemble/Mosaic’s commitment to diversity, equity and inclusion as illustrated by the inclusion of affordable workforce housing in this project as well as the many steps they take to offer opportunity across their development efforts,” said Philadelphia City Councilmember Kenyatta Johnson (Second District), which includes the Philadelphia Navy Yard. “This project demonstrates what so many of us already know: the Navy Yard is a gem of Philadelphia, and it is going to be a dynamic place to live.”
“This represents a significant milestone in the long-term development partnership between PIDC and Ensemble/Mosaic with residential the final piece in creating a true live, work, stay, and play community.” said Kate McNamara, PIDC’s senior vice president, Navy Yard “During this time, there were many obstacles to overcome to make this project happen, so it is exciting that this vision is finally becoming reality.”
AVE, a brand of Korman Communities, provides flexible living options, unparalleled amenities and attentive resident services. Approximately 100 of the units will be fully furnished to provide flexibility for those traveling on extended business, relocating for work, or in between homes. Amenities will include an expansive fitness center, game rooms, a business center, a theater, work pods, lounge areas, an outdoor pool, coffee bars, pet spas, outdoor kitchens and fire pits, party rooms, and a bike lounge with indoor bike storage.
“Korman Communities, a five-generation, 100-year-old, national real estate company, based in Philadelphia, is so excited to break ground on AVE Navy Yard. This is one of the few opportunities for a large city to develop an entirely new residential neighborhood that truly is for everyone. We are going to provide the most incredible living experiences for someone who is just starting out, a seasoned CEO, and everyone in between. We will have floor plans ranging from studios to penthouses, and flexible-stay furnished apartments, as well as traditional, long-term apartment leases. Our state-of-the-art community amenities will be unlike anything in the entire region. The Navy Yard is going to raise the bar for urban living with a suburban feel,” said Bradley Korman, co-CEO of Korman Communities.
AVE Navy Yard is developed with a specific focus on health and wellness. The buildings are directly adjacent to three public parks totaling 15 acres of green space and the developers are pursuing LEED Silver Certification with a focus on health and wellness and indoor air quality. In addition, AVE Navy Yard will include 92 deed restricted affordable and workforce housing units available to individuals and families with AMIs between 60% and 120%. These units will ensure that the residential offerings at the Navy Yard provide living opportunities for residents across income levels.