Brandywine Realty Trust (NYSE: BDN), Campus Crest Communities, Inc. (NYSE: CCG), and Harrison Street Real Estate Capital (“HSRE”) today announced a joint venture partnership to develop a 33-story, 850-bed student housing tower at Brandywine’s Cira South development in University City, Philadelphia. The project, called The Grove at Cira Centre South, is being developed at 30 th and Chestnut Streets on a site leased from the University of Pennsylvania (Penn).
The Grove at Cira Centre South (Photo: Business Wire)
The Grove at Cira Centre South has a total cost of $158.5 million and will be financed by a $97.8 million loan provided by PNC Bank, N.A., as Administrative Agent, and Capital One, N.A., as Syndication Agent. Brandywine and Campus Crest will each own 30.0% of the joint venture, while HSRE will own 40.0%. The joint venture expects to attract graduate and undergraduate student residents from the surrounding area, including students from Penn (total enrollment of ~25,000 students), Drexel University (total enrollment of ~25,500 students) and other colleges and universities located in University City and Center City Philadelphia. Construction has already commenced with a targeted completion date in fall 2014; leasing is expected to begin in fall 2013. The project will offer an attractive, upscale housing option within walking distance to retail, residential, mass transportation and university facilities and will feature attractively furnished units with bed-bath parity. It will include a broad array of high-end appointments including a roof top swimming pool, media lounge and a 24-hour fitness center. Residents will also have access to a full concierge level providing hotel-like amenities throughout the day including coffee service, a library technology center and first floor retail. Ample common areas including numerous study lounges will be designed to accommodate social and academic interaction. To foster a sense of community and promote resident engagement, the property will regularly host a variety of activities. A highly trained, professional staff – including a general manager, leasing manager, community assistants and a courtesy officer for security purposes – will serve residents. As part of the partnership agreement, Campus Crest will act as property manager of the completed 850-bed tower.