Episcopal Diocese to Convert 26 Pennsylvania Church Properties Into 1,000 Housing Units

The Episcopal Diocese of Pennsylvania and The Michaels Organization will convert 26 underutilized church properties into over 1,000 apartments in Philadelphia.

By: AXL Media

Published: Mar 17, 2026, 5:40 AM EDT

Source: Bisnow

A Strategic Partnership for Urban Revitalization

The Episcopal Diocese of Pennsylvania has officially selected The Michaels Organization to spearhead the conversion of its property portfolio. Under the agreement, the diocese will maintain ownership of the land in most instances, while Michaels serves as a fee developer and long term property manager. The initiative targets locations where social and economic activities have outpaced religious participation, particularly within Philadelphia's Center City and surrounding Pennsylvania suburbs.

Legal leadership for the project noted that many of these congregations have migrated away from their original locations, leaving behind substantial structures in prime neighborhoods. By transitioning these sites to their "highest and best use," the diocese hopes to generate sustainable revenue while contributing to the local housing supply. While specific addresses for the 26 sites have not been disclosed, several key properties are situated in high density urban corridors where residential demand remains at a premium.

Transforming Historic Sanctuaries into Modern Living Spaces

The conversion of historic religious architecture presents unique architectural and logistical hurdles compared to standard office or school redevelopments. Unlike traditional buildings with uniform floor plates, churches often feature irregular layouts, soaring ceilings, and intricate structural elements that must be preserved under historic protection guidelines. This requires a sophisticated design approach to ensure that the "fabric" of the original building is respected while carving out functional, modern apartment units.

Despite these complexities, the project is scheduled to move forward rapidly, with work on select sites potentially beginning as early as late 2026 or 2027. The resulting units will serve a diverse demographic, offering a blend of market rate apartments and designated affordable housing. This dual approach helps the diocese fulfill its social mission while ensuring the financial viability of the massive redevelopment undertaking across the US & Canada region.