Citing a confidentiality agreement, he declines to disclose either the price or Aimco's proportion of ownership, but says, that while it becomes majority owner, "the University retains a significant equity interest in the property." The building, which dates back to the 1920s, contains 315 residential units. "Most are one-bedroom units with a sprinkling of studios and two-bedroom units," he says, adding that the building is 98% occupied. A university spokesman also declined to disclose Aimco's investment.

Initial rehabilitation will focus on life-safety upgrades, such as sprinklers, a reorganized fire prevention system, pressurized stairwells and electrical capacity to suit today's demands. "There will be some cosmetic improvements, but nothing significant," Fein says.

The acquisition comes from a $225-million equity fund established between Aimco and California State Teachers' Retirement System in 2003 to invest in student-related properties. This is the JV's first, but not last, acquisition at U. of Penn. "We have an ambitious plan to add units with Penn as a partner over the next few years," Fein says, declining to project a total number of units. "All will be in existing buildings," he says. "The objective for us and CalSTRS is to become part of the fabric of the Penn campus."