Stockton Real Estate Advisors (“SREA”) and U3 Advisors (“U3”) land-leased three adjacent properties, 4001 Chestnut St, 4003 Chestnut St, and 36 S 40th Street through a competitive RFP process from the University of Pennsylvania (“UPenn”). These three buildings total approximately 11,890 SF and were 100% vacant for nearly two decades before SREA and U3 executed a 50-year ground lease with UPenn.
The plan is to redevelop and operate the properties, enlivening and upgrading the area around 40th and Chestnut. The properties will be converted into retail, commercial, and residential space while also adding an open space park that will blend into the changing fabric of the neighborhood and add a unique amenity for residents and tenants alike.
4001 Chestnut, occupying the premier corner, will encompass two stories of high-profile commercial retail space, while 4003 Chestnut will add a unique blend of furnished short-term and long-term stay residential units, addressing a growing need for flexible stay options in the area. The ‘pocket park’, on the adjacent 36 S. 40th site, will provide an outdoor option for diners and residents and a common area space that can accommodate small performances or gatherings.
These buildings are planned to open in the first quarter of 2020.
- Secured selection for development services by UPenn through a competitive RFP process
- Procured commercial tenants through targeted retail and commercial leasing campaign
- Provided Construction Management services
- Teamed with marketing and design partners to create branded residential units
- Secured project financing through regional bank and considered Historic Tax Credits financing
- Provided accounting and asset management reporting services to investors
How SREA Added Value:
SREA and U3 Advisors have been able to design and commence the redevelopment of three parcels that sat dormant for years. The contemplated mix of commercial and residential use will further the revitalization of the 40th Street corridor, improving the neighborhood for residents, tenants, students and visitors.