Radnor's Redevelopment of Church-Owned Site Pays Off as Meds and Eds Surge

PHILADELPHIA, PA—A joint venture of Korman Residential and The Carlyle Group has acquired 3737 Chestnut, a 26-story, 276-unit apartment building, from Radnor Property Group for $118 million, or approximately $544 per rentable square foot. The upscale residential building, located at 38^th and Chestnut Streets, is fully leased at the time of the sale.

3737 Chestnut, a $92.5 million from-the-ground-up development which was completed in fall of 2015, proves the strength of Radnor Property Group's primary focus within the city in the growing “Meds and Eds” sector, where growth is projected to continue; attracting graduate students, millennials and young professionals, as well as creating thousands of additional jobs.

In University City alone, the population of 22-24-year-old residents is over 53,000, with nearly 44,000 enrolled in colleges located within the region. As of 2016, the district now provides jobs to almost 77,000 residents with no signs of slowing down. Since 2000, University City has grown by 16 percent, attracting young, working professionals looking for Radnor's upscale, amenity-rich developments.

Radnor's work on 3737 Chestnut earned the Urban Land Institute's Willard G. “Bill” Rouse III Awards for Excellence for its ability to convert church owned property into a lucrative mixed-use project. Radnor Property Group and equity partners invested $37.4 million in the project, with total project costs around $92.5 million.

Described by award judges as a “well-choreographed public/private partnership with creative multi-source financing on a tight site,” this 276-unit mixed-use project stabilized the asset of the historic Episcopal church and provided a new three-story office building, its community center and childcare center with a rooftop playground, as well as much-needed market-rate housing and top-notch amenities for those who work and study nearby.