The University Board of Trustees Budget and Finance Committee approved the conversion of a surface parking lot located on the northwest corner of 34th and Chestnut streets into new mixed-use buildings yesterday.
Planners are hoping to break ground by this September, and they project that the building will be completed in the latter half of 2007.
The land is adjacent to the Sheraton University City Hotel at 36th and Chestnut streets.
According to Penn real estate officials, the project fits in with the overall strategy for development in the area.
"University City continues to attract new development, new businesses and new residents to one of Philadelphia's most vibrant neighborhoods," said Omar H. Blaik, senior vice president of Facilities and Real Estate Services at Penn, in a press release.
"This project is part of our east campus strategy and is indicative of Penn's commitment to engage locally in building communities and investing in job creation and economic development."
The $100 million project, which is being developed by Hanover RS Limited Partnership of Texas, will consist of seven- to eight-story luxury apartment buildings. They will house 295 units with combined square footage of about 325,000. Approximately 26,000 square feet of ground-level retail and commercial space is included in the project.
Also planned is a new five-story parking garage containing 320 parking spaces. There is already a Penn-owned parking structure across the street from the planned development, on the northeast corner of 34th and Chestnut streets.
As part of the deal, the University will lease the buildings to the developer for 65 years. However, after the completion of the project, the developer may choose to sell its interest in the property, subject to refusal by Penn.
The committee also approved a $2.9 million renovation of the second floor of the School of Dental Medicine, which houses the Orthodontics Department.
