While the new Penn-assisted school officially opened its doors only yesterday, it has already made a substantial contribution to the neighborhood.
Property owners in the catchment area of the school -- which stretches from 40th to 47th streets -- have seen their real estate skyrocketing in value.
According to agents at O'Donnell Real Estate, values have been increasing substantially since Penn announced three years ago that it was going to build the school. And the trend has continued since the catchment area was announced last July.
"Once the school boundary was established, it really caused the value in that catchment area to go up," said O'Donnell real estate agent Steve Drabkowski. "Families didn't have to worry about sending their kids to private schools or to inadequate public schools."
Drabkowski said that many are seeing University City as an attractive place to live, claiming it is cheaper, has better parking, and more green space than Center City.
"People are taking more pride in the area," he said.
Grace O'Donnell, treasurer and part owner of the agency, gave some statistics on the dramatic value growth in the area.
In December 1998 -- before the Penn-assisted school project was announced -- 535 S. 46th St. was sold for $91,500. Nearby, 515 S. 46th St. was sold in July 2000 for $218,000.
Some weren't so certain, however, that all the credit belongs to the new school.
"My impression is that real estate values are up across University City and how much that has to do with the school I honestly don't know," said Barry Grossbach, president of the Spruce Hill Community Organization.
He said several other University initiatives have added to the increase in property value.
An enhanced mortgage program Penn started in 1998 offers staff incentives for moving into University City.
Single and two family-home buyers can apply for $15,000 in funds usable towards "closing costs, down payment, interior home improvements, and exterior home improvements," according to the policy.
This money does not have to be paid back as long as the purchaser keeps the home as his or her main residence for seven years.
The result of the program has been an increase in the number of staff members living in the area and a larger number of former multi-unit homes being converted into single and two-family houses.
"Property rates are going up across the board," Drabkowski said. "You have the biggest increase in the catchment zone, but [there's been an increase] even up to 49th [Street]."
O'Donnell said she sold 4812 Beaumont St., a property inside the Penn-enhanced mortgage area but outside the catchment zone, sold in 1995 for $92,500. It resold in June 2001 for $121,000.
Drabkowski said these homes are attractive to residents who don't have or plan to have children.
