MAYOR NUTTER ANNOUNCES URBAN OUTFITTERS EXPANSION AT THE NAVY YARD

Urban Outfitters, Inc. to bring 1,000 new jobs to Philadelphia within three years
Philadelphia, February 9, 2011- Mayor Michael A. Nutter, Richard Hayne, the President of Urban Outfitters, Inc., and the Philadelphia Industrial Development Corporation (PIDC) announced that Urban Outfitters will acquire and redevelop two Navy Yard buildings totaling more than 100,000 square feet, investing about $30 million in the expansion. This transaction will allow Urban Outfitters to expand their operations—currently housed in six Navy Yard buildings—and to add an additional 1,000 permanent employees at The Navy Yard over the next three years in addition to construction positions. The company currently has 1,200 permanent employees at its corporate headquarters.

Urban Outfitters will purchase Building 3, formerly known as The Navy Yard Cruise Ship Terminal, at fair market value and will spend $18 million to $20 million on building renovation and necessary infrastructure investments. Urban Outfitters will also take over operations and renovate Building 14, which is close to their other office spaces. Renovations will be completed in February 2012. Urban continues to have options on three additional Navy Yard buildings to support their long-term growth plans.

“Urban Outfitters opened in Philadelphia more than thirty years ago and remains today a model Philadelphia corporation. We applaud and celebrate their expansion at The Navy Yard as they continue to bring more jobs to Philadelphia and invest in The Navy Yard’s outstanding corporate campus,” said Mayor Nutter. “This expansion is one of the most important business expansion announcements of my Administration. It emphasizes that Philadelphia has a dynamic economy and is attracting new jobs.”

When Urban Outfitters, Inc. consolidated their corporate offices to The Navy Yard, the City, acting through the Philadelphia Authority for Industrial Development (PAID), provided the company with the option to acquire five additional buildings surrounding their Navy Yard campus. Since Urban Outfitter’s growth has occurred on an accelerated timeline, The Delaware River Port Authority (DRPA) with the approval of PAID, terminated their lease for Building 3—which would run until 2018—in early January 2011. Consequently, Urban Outfitters is now able to expand into the property. Urban Outfitters has the option to acquire three additional buildings surrounding their campus over the next three years to support their projected growth. The total investment in these future expansion phases is estimated at an additional $50 million.

“I couldn’t be happier about this new expansion by a cutting-edge company, Urban Outfitters, here at The Navy Yard. This is a great example of what can be accomplished through an innovative, effective, and mutually beneficial partnership among City government, PIDC and a strong, dynamic corporate partner,” said City Council President Anna C. Verna.

In order to accommodate the rapid growth of Urban Outfitters, Inc., the City and PIDC worked closely with stakeholders at The Navy Yard to negotiate this expansion. The net sale proceeds from the property will be reinvested in the development, operation and management of The Navy Yard.

“Through their continued growth and investment and the quality of the spaces they create, Urban Outfitters has become an anchor presence at The Navy Yard, driving its identity as the region’s most progressive, dynamic and sustainable business campus. We look forward to this next phase of expansion and all the positive benefits it will bring to The Navy Yard and the City of Philadelphia,” said Peter S. Longstreth, President of PIDC.

In 2004, Urban Outfitters, Inc. consolidated their operations to The Navy Yard where they purchased or leased six buildings encompassing 282,000 square feet. Since this time, the corporation has increased from 600 corporate employees to currently 1,500 corporate headquarters associates.

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