The U. of Penn facility will house a translational research program initiated by scientists at the university's school of medicine and funded by a group of investors and the National Institute of Health. Penn acquired the property as part of its long-term campus development plan, which includes expansion into a former industrial area that reaches toward the Schuylkill River. Penn holds the ground lease on the property, and Forest City has an option to purchase the facility on completion of the project.

The campus development plan was established in 2001 "to assure that the university's physical environment fulfills the needs of its academic mission," according to Omar Blaik, SVP of facilities and real estate services at Penn. "The translational research project is an excellent example of adapting an older industrial structure into a modern facility for applied medical research," he says. The expansion of the campus, Blaik adds, "is creating tremendous opportunities for economic development for the university and the Philadelphia region." Penn's annual research budget exceeds $500 million.

The project also reflects Forest City's focus on core markets, which include Philadelphia. It recently broke ground for the $68-million, 540,000-sf Quartermaster Plaza retail center at 2800 South 20th St. In addition, it has interests in 1,227 apartment units here, including Drake Tower, which is a conversion of a 1929 hotel at 15th and Spruce into 280 residential units; and the Lofts at 1835 Arch, which is the conversion of the 1925 former Bell Telephone building into 191 loft-style units.