Cronheim Lodge Capital (CHC) has secured $40MM+ for the development of Nittany Residence Membership, a 70-unit, luxurious condominium-hotel with ground-floor retail on the doorstep of Penn State’s major campus. The nonrecourse building mortgage was positioned with a nationwide personal lender.
This marks the primary condominium-hotel to enter the submarket and the one of its form within the borough of State Faculty to permit unit homeowners to take part in an on-site lodge administration program to generate nightly rental earnings when not in use. Potential homeowners can depend on each capital appreciation and ancillary income streams. The challenge has achieved sturdy pre-sales given the deep undersupply of lodge keys in State Faculty. Scholar Lodges will oversee lodge administration and operations.
Challenge Particulars
Items will supply companies corresponding to 24/7 safety, concierge, housekeeping, and health heart entry. NRC provides the Penn State College alumni community and buyers an opportunity to personal a bit of State Faculty and have direct entry to the general public college.
David Turley, president of CHC, mentioned, “This was an extremely distinctive project and asset class, basically fusing two asset sorts collectively—residential and hospitality. Whereas there’s proof of idea on this hybrid product at different universities, this was a trailblazing challenge and thought for State Faculty that may very well be efficiently architected by our sponsor workforce, a partnership of Penn State alumni with native lodge expertise. We flexed our sponsor’s deep market experience and thoughtfully positioned the Challenge to our capital relationships. After entertaining a number of choices, we moved ahead with a lender that actually believed within the Challenge and deal construction—we have been very happy with the execution. This deal demonstrates our capacity to place collectively advanced capital stacks and prove of the field, hotel-adjacent concepts into realities.”
