A new gateway to Center City

In a few decades, Penn students visiting campus may not recognize their alma mater.

The University announced two weeks ago its development plans for the 3900 block of Walnut Street, and gave the official approval to the plan announced in May for the redevelopment of the riverfront postal lands to the east of campus.

At the summer meeting of the University Board of Trustees, the plan to redevelop the 24 acres of land along the Schuylkill River was officially endorsed by the attendees. Projected to take about three decades to complete, the final price tag is estimated at $1.94 billion, with about 10 percent, or $194 million, to be contributed by taxpayers.

More immediately, Penn officials say the northern side of Walnut Street between 39th and 40th streets is set to be demolished, with new mid-rise apartments and retail space set to open by the fall of 2008.

The University will maintain ownership of the land on which the new building will be constructed, but will not be in charge of the new properties. University Partners, a division of FirstWorthing Corp., is set to foot the bill for construction -- expected to be around $50 million.

Penn will earn revenue from the project by collecting money for the use of the ground, to the tune of about $300,000 a year for a 65-year lease.

The site is set to feature about 150 apartments with room for 500 tenents. The units will range in size from studios to four bedrooms, and the building is expected to be about 13 stories tall. The ground floor will feature roughly 50,000 square feet of commercial and retail space.

Penn Executive Vice President Craig Carnaroli said that by pricing the apartments similarly to other off-campus living options he expects the new building to help control the cost of living in West Philadelphia.

"Additional [apartments] should provide a moderating force, but it is going to be a newer product and of higher quality" so prices will likely be comparable, Carnaroli said. "I think as I look at the rents in the off-campus market they will fall."

The main goal of the project, according to Interim Director of Facilities and Real Estate Services Tom Stump, will be to increase the amount of available housing on campus.

"One of the biggest problems we have is providing on-campus housing, and this will be a big step in the direction of helping us with that difficulty," Stump said. He added that the new units will "not only provide housing, but provide affordable housing" comparable to the cost of living in the high rises.

Penn and FirstWorthing have enlisted the help of Philadelphia-based design firm Erdy McHenry Architecture LLC to assist in development.

Penn currently owns the retail space which exists on the proposed site and is working with tenants to relocate them in time for groundbreaking on the project, which is expected to take place by the end of this year.

The other project captivating the attention of Penn administrators is the development of the 24-acre postal lands between Locast and Market streets, which Penn is set to acquire in March 2007.

The University has completed concept drawings for the area.

Provost Ron Daniels, who serves on the Campus Development Committee, an advisory group dedicated to laying out a plan for the future of campus, said the project, when completed, will serve as a bridge between Center City and University City.

"It allows for much greater engagement of the campus with Center City, and that will be reflected in a whole set of cultural, academic, athletic, retail -- all sorts of activities that will take place on the eastern edge of campus," Daniels said. "Right now it is a fairly oppressive entrance [from Center City], and you look at the watercolors and see what kind of street life is possible."

Daniels said that the opportunity to expand campus on grounds contiguous with the University is a luxury not many expanding universities have.

"For decades the University has been hopeful that it would be able to acquire the postal lands and extend the campus eastward," Daniels said. The acquisition of the property is "a tremendous opportunity ... to allow us to respond to various pressures from within the community such as having additional housing, student performance space, meeting space and improved academic facilities."

The international planning and design firm Sasaki Associates Inc. has assisted in the planning, which includes retail, apartments, open green space and an extension of Locust Walk to Center City.

Stump said he agreed with Daniels that Penn is lucky to have the chance to develop the postal lands instead of establishing a satellite campus away from the University.

"It only comes around once in a lifetime that you would get such a wonderful piece of property that is contiguous with our current campus," Stump said. "We would be crazy not to take advantage of it."

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