The face of Penn is changing, one retail establishment at a time.
The arrival of a new school year marks several new openings.
A new PNC Bank branch has opened at the corner of 40th and Walnut streets adjacent to Marathon Grill.
On the same block, Bonded Cleaners is occupying the space left vacant by Bike Line. The cleaners will move back into a location at 37th and Spruce streets -- created by splitting up the venue currently occupied by Dolby's Medical Bookstore into two stores -- at a later date.
Another visible retail change will be the new American Apparel located at 37th and Walnut streets, set to open on Sept. 16. The location of this Los Angeles-based clothing chain was previously occupied by Smith Bros., a high-end clothing store which some felt was too pricey for students.
American Apparel was selected because it produces and sells a product whose design and price are believed to be suitable for students and professionals, Facilities and Real Estate Services spokesman Tony Sorrentino said.
Sorrentino believes that the chain, which has branches in metropolitan Los Angeles and Manhattan, will fit in well with University Square.
"We first learned about it because it was sweatshop-free," Sorrentino said.
However, Penn only found out about another kind of legal issue with the company -- a sexual harassment suit filed against the company‹¨«s CEO -- months after deciding on the store.
Sorrentino said that Penn is uncertain the impact this suit will have on the store, as the legal issues concern upper management. These retail changes have been met with mixed reactions.
"I think the [new] bank is an excellent idea," Engineering senior Pooja Sethi said, noting that the PNC bank branch on 36th and Market streets was too far and was inconvenient for students with bank errands.
She was less enthusiastic about American Apparel, however.
"I want something a little more common," she said in reference to the fact that the clothing chain was not that well-known among the students.
Sethi said that both Urban Outfitters and Ann Taylor Loft, existing clothing stores on campus, catered to a limited market and style.
Another focus of Penn‹¨«s upcoming real estate projects is on the 3900 Walnut St. block, where Cinemagic closed in March. It is also currently home to CVS, which is scheduled to move to the Moravian Cafes on 34th and Walnut streets in spring 2006.
"Our focus now is entirely on the 3900 block," Facilities and Real Estate Services Senior Vice President Omar Blaik said. "The [other real estate projects] are kind of off the ground."
Blaik stressed the importance of the 3900 block development, citing the area as "100 percent the corner of where students are." Penn is now in the last stages of deciding on a developer for the block, and is reviewing final presentations. While the precise selection of retailers will be decided by the future developer, the project aims to include private apartments for students above the retail spaces on ground floor. The project has a timeframe of one year.
Stores including Power Yoga, Kinko‹¨«s, the Last Word bookshop, College Pizza and Philly Diner are in the process of being relocated.
On 40th and Chestnut streets, the United Bank has closed down and 20,000 square feet of retail space will open up. Power Yoga is confirmed to be moving to the area, while other tenants, such as the Last Word bookshop, are still finding spaces. Blaik sees this as a chance to expand the retail district, from "where the amenities are [between 4000 Spruce and Walnut]," farther north at Chestnut Street.
On 4200 Pine Street, Penn is turning a late 18th century mansion into 33 luxury condominiums. Construction is set to begin next month. The Penn Press, which used to occupy the location, is relocated to Wayne Hall on 39th and Spruce St. The project is part of an ongoing effort to produce more housing supply and home ownership opportunities for residents in University City, according to Sorrentino.
Indicative of these efforts is a $100 million luxury apartment complex -- which will include retail spaces on the lower levels -- to be built on 34th and Chestnut streets. Penn has leased the land to the Hanover Company for 65 years and the project -- which will be completed funded by the developer, unlike previous projects -- is set to be completed at the end of 2007.
Hanover "came to discover the market here. [It is] a robust market with monstrous growth sales. ... Penn now has market rate return‹¨« on the ground, Blaik said, noting the unwillingness of businesses to invest in this area just several years ago. In addition to 295 luxury apartments targeting graduate students and faculty, the project will create 40,000 square feet of retail space, running from 34th and Chestnut streets to the Sheraton hotel.
Blaik believes that this area has the potential of becoming the "core retail district on campus."
With current retail spaces ‹¨«maxed out,‹¨« according to Blaik, the new project can attract large retail outlets that require 10,000 to 15,000 square feet of space, such as home furnishing and art supply stores -- which students have expressed a desire for in surveys.
With so many vacancies for retail outlets now available on campus, the issue of national chains versus independent retailers also arises.
"We are working hard to keep that flavor ... [of the balance between] the mom-and-pop shops and national chains," Blaik said, noting that the struggle to maintain a "unique flavor of the right mix" of stores influences the choice of developer.
He said that the content of the store is of higher priority -- "if that means a national brand, it means a national brand" -- and added that Penn "cannot force a particular tenant [upon a developer] ... which may lose financially."
