SSH Real Estate, in partnership with Young Capital, is moving the Witherspoon Building’s 186 units from short-term rentals to traditional leases following Sonder’s sudden collapse.
In November, Sonder said it would wind down operations and file for Chapter 7 bankruptcy after Marriott ended a licensing agreement the prior day.
According to reporting by Philadelphia Business Journal, the conversion adds inventory to an already booming Center City apartment market.
Event and stakeholders
Ownership is repositioning the historic property with studio, one- and two-bedroom apartments.
Andrew Walheim, vice president of investments at SSH, said, “We are optimistic about the future of the building as a residential property and the positive momentum in Philadelphia as a vibrant, lively, and mixed-use city.”
Prior coverage of the apartment conversion following Sonder’s wind-down outlines the transition to standard leases.
Leasing and resident operations
The change shifts day-to-day work from nightly turnover to lease-up, resident screening, and onboarding.
Property teams will adjust maintenance schedules and service expectations from hotel-like housekeeping toward routine work orders and rent-ready standards.
Marketing and leasing functions become central, including managing inquiries, unit showings, and resident communications at scale.
Package handling, amenity access, and common-area use will be aligned with longer-term resident patterns rather than short-stay guests.
Compliance and oversight
Operators will center compliance on landlord-tenant obligations, including fair housing practices, documented screening, and consistent deposit handling.
Recordkeeping, periodic inspections, and service response tracking will support oversight of recurring residential operations.
Policies for guest access and building hours that were oriented to short-stay activity will be reset to lease terms, resident keys and fobs, and standard community rules.
Consistent notices and documented communications become more important in a long-term rental framework.
Financial and contractual implications
Revenue planning pivots from short-stay variability to rent roll stabilization and renewal management.
Vendor contracts and staffing levels tied to frequent cleanings and furnished turnover may be renegotiated, with furnishing inventory and FF&E strategies adjusted for traditional tenancy.
Insurance coverage and risk controls align to multifamily exposures rather than hospitality operations.
The end of Sonder’s licensing relationship with Marriott, followed by the Chapter 7 plan, underscores the need to unwind operator dependencies and update service agreements.
Market context and capacity
The shift adds supply to Center City and may redistribute leasing activity among comparable assets.
The building is one of several short-term rental properties in Philadelphia that closed due to Sonder’s shutdown.
Background on the return to long-term rentals after a short-term operator shutdown provides additional context on the repositioning and unit mix.