The latest addition to Philadelphia's real estate will be a skyscraper. However, this skyscraper will not house posh companies or retail stores but will be a student dormitory.
Two real estate investment trusts and a private equity firm are collaborating on a $158 million project to build a 33 story skyscraper at the Cira Centre on the southern side of University City section of Philadelphia, reports Wall Street journal.
The companies: Campus Crest Communities Inc., Brandywine Realty and Harrison Street real estate capital will build the student sky-rise on a land that Brandywine leases from the University of Pennsylvania, reports Bizjournals.
The two trusts, Brandywine and Crest campus will own around 30 percent of the building's stake each, while Harrison Street real estate capital will hold 40 percent of the stake. The building will be funded by a $9.7 million loan from PNC Bank, reports Commercial Property Executive.
The building will cater to housing needs of both graduate and undergraduate students from Drexel University and Penn as well. The sky-rise dormitory will have around 850 beds with added luxury amenities like 24 hour fitness center, a roof-top swimming pool and a media lounge. Concierge facilities along with retail spaces and coffee houses will also be featured in the area, reports Vancouver sun.
The building is slated to be completed by the fall of 2014.
"We look forward to further expanding our successful Cira Centre development and shaping the Philadelphia skyline with our new partners. We recognized the strong demand for graduate and undergraduate student housing in University City and selected Campus Crest for its proven operating platform and track record of success. Additionally, Harrison Street's astute investment experience and national market perspective further ensures excellent execution and a successful investment result." Gerard H. Sweeney, CEO and President of Brandywine told Business Wire.
Campus Crest and Harrison Street also expressed their delight at being involved with the project. Barclays Bank served as the financial advisor of the deal, reports Vancouver Sun.
Philadelphia's commercial real estate market is expected to pick up in the coming years with a number of constructions lined up for the year. However, the feasibility of these projects partly depends on incentives of tenants and occupants as well as tax breaks