Brandywine Realty Trust (NYSE: BDN
), Campus Crest Communities, Inc. (NYSE: CCG
), and Harrison Street Real Estate Capital have announced a joint venture for the development of a 33-story, 850-bed student housing tower at Brandywine’s Cira South development in University City, Philadelphia.
Construction of the project at 2930 Chestnut Street in University City, west of Philadelphia’s CBD is already under way, with a targeted completion date of fall 2014. Leasing is expected to begin in fall 2013.
The $158.5 million Grove at Cira Centre South project at 30th and Chestnut Streets on a site leased from the University of Pennsylvania is being financed by a $97.8 million loan administered by PNC Bank, N.A. and syndicated by Capital One, N.A.
Brandywine and Campus Crest will each own 30% of the joint venture, while Harrison Street will own 40%. The joint venture expects to attract graduate and undergraduate student residents from the surrounding area, including students from Penn and Drexel University, which each have a total enrollment of about 25,000 students, and other colleges and universities located in the University City and Center City section of Philadelphia.
The project will offer upscale housing within walking distance to retail, residential, mass transportation and university facilities. Amenities include a roof-top swimming pool, media lounge and a 24-hour fitness center.
Campus Crest will act as property manager of the completed tower, designed by architect Erdy McHenry in consultation with Cira master plan architect César Pelli. The project is targeting LEED Gold certification.
Barclays served as financial advisor to Campus Crest on the transaction.