Developers buy State College Kildare’s pub property

Prime real estate on the east side of downtown State College has been sold for $7.5 million to Chicago developers that could build an 11 story, 124-foot mixed-use building.

CA Student Living recently bought 538 E. College Ave. from Jeff Haas, who advocated for collegiate housing overlay projects to be developed on the 500 block of East College Avenue. The company specializes in investment, development and management in student housing.

The developers could reach the maximum height allowed — which was 65 feet until July 6 — if they design a building with commercial space on the first floor, two floors of mixed graduate and professional housing. They also would have to draw up sustainable features that meet the Leadership in Energy and Environmental Design standards.

Haas said in an email he wanted to develop the property, but couldn’t pass up CA Student Living’s offer.

“It was always our intention to develop the property,” he said. “After the collegiate housing overlay was approved we were contacted by CA Student Living. (Due to) the combination of the financial opportunity and that CA shared our vision for a high quality multi-use building for the property we thought it was in our best interest and the best interest of the State College borough for continued downtown development of high quality, multi-use buildings ... to sell the property.”

Haas said he will not be a part of redevelopment of the property and will instead focus on expanding Team Blue, a hand car wash and detail company, through franchising. He founded the company with his son, Jason, in 2008.

“As a CEO and entrepreneur, I am always looking at opportunities,” Haas said. “I really enjoy making things happen.”

CA Student Living chief operating officer J.J. Smith, who is also listed as the company’s media contact, could not immediately be reached for comment.

The property is home to Kildare’s Irish Pub, but it is unclear if the restaurant is in CA Student Living’s plans.

“Our lease runs into 2017,” Kildare’s general manager Lincoln Stuyvesant said. “So, I believe we will be in our present location for the next year and foreseeable future.”

Stuyesant hopes to continue operating at the location, but will have a backup plan.

“We hope to be back at this location when and after the new building is constructed,” he said. “...We are searching for a great location in State College for the interim or long term.”

State College Borough Council voted 6-1, with Sarah Klinetob casting the dissenting vote, in July to allow such projects.

Klinetob favored some incentives of possible collegiate housing overlay projects.

She said during council’s July 6 meeting, however, that she was deterred by a pending comprehensive rezoning and the downtown master plan’s indication that the area was predominately students. She suggested that the core of downtown was more suitable for professionals.

Council President James Rosenberger and Councilman Evan Myers explained their support of such projects during the meeting.

Rosenberger said student density on the block would increase by a small fraction and that council would regret if it turned down the measure.

Myers questioned how the borough could preserve its neighborhoods, stay viable and pay its bills. He said the borough needed to be worried about its tax base, because council was struggling to balance the budget and needed to explore how to expand it.

This story was originally published November 13, 2015 at 1:34 PM with the headline "Developers buy State College Kildare’s pub property."