Topping-off set for Wednesday for University City apartment tower

A complex project at 3737 Chestnut, a new high-rise apartment building, will also create space for the Episcopal Diocese and Cathedral, as well as a community center and child-care facility. BLT Architects

Radnor Property Group is scheduled to top off Wednesday a new 25-story apartment tower, 3737 Chestnut, one of several high rises going up in University City to cater to college students who want to rent near the Penn and Drexel campuses.

Wayne-based Radnor Property developed the $95 million project in an unusual partnership with the nonprofit Philadelphia Episcopal Cathedral.

As part of the complex deal, the Episcopal Cathedral will reap income and new space, company founder David Yeager said in an interview.

"The Episcopal Cathedral maintains ownership of the ground with a long-term lease, while owning a portion of the project in the apartment structure," Yeager said.

New York-based Assurant Inc., a publicly traded financial and insurance benefits company, is the capital partner and main investor, he added.

The sprawling project will include a 7,000-square-foot community center adjacent to 3737 Chestnut to be owned and operated by the Episcopal Cathedral, a three-story office building for the Episcopal Diocese of Pennsylvania, and a new child-care center, plus improvements to the 19th-century church.

The child-care facility, which has been operating in the undercroft of the cathedral, already serves more than 100 children, Yeager said.

"My niche is public-private partnerships, colleges, nonprofits, and oftentimes we get involved in ground-lease arrangements," he said.

"We've done other work with institutions like Franklin & Marshall College and Bucknell where we partner with a college, university or religious organization. These institutions have an asset, and they want to harvest the asset."

The 290,000-square-foot high rise will have 276 apartments, one- and two-bedroom units. Leasing is set to begin in February, with an Aug. 1 move-in date planned for the first residents.

Bozzuto will be the leasing and residential apartment manager.

The development team includes several Philadelphia-area design and engineering firms: BLT Architects; Bala Consulting Engineers; Harman Group; Boles, Smyth Associates Inc., Thornton Tomasetti; TRC; SPG3 Architects; Cairone & Kaupp; Hartman Design Group, and GWA Lighting.

Intech Construction is the construction manager. Retail leasing will be handled by CBRE|FAMECO and office leasing by Newmark Grubb Knight Frank.

The development's mortgage banker is Carey, Kramer, Pettit, Panichelli and Associates. Construction lending is provided by First Niagara Bank and RBS Citizens.

Source: Philly.com