State College

Proposed apartment building in State College could force closure of longtime Happy Valley hot spot

A rendering of what Core Spaces hopes its proposed apartment building will look like at 240 S. Pugh St. The building would replace the Days Inn and other businesses, with construction expected to begin next September.
A rendering of what Core Spaces hopes its proposed apartment building will look like at 240 S. Pugh St. The building would replace the Days Inn and other businesses, with construction expected to begin next September. Publicly submitted plans by Core Spaces

A new six-story, 172-unit apartment building could be coming to Pugh Street in State College — and the proposed plan could force longtime Happy Valley hot spot Mad Mex to either relocate or permanently close its doors.

Based on a public presentation given Tuesday by Chicago-based developer Core Spaces, the current plan involves the demolition of all buildings at 240 S. Pugh St. — which includes the Days Inn by Wyndham Penn State, Mad Mex and Brewsky’s Bottle Shop. Construction on the proposed student housing would start next September, and no retail space is planned for the new building.

It is not known when bar/restaurant Mad Mex might be forced to close its doors under the proposed plan, or whether it might choose to relocate. A spokesperson for Mad Mex’s parent company intimated it was too early to tell, as the plan presented Tuesday to State College’s Design Review Board still needs to undergo multiple reviews and revisions before it’s formally approved.

“We don’t really have anything to say publicly because it’s preliminary,” big Burrito Restaurant Group spokesman Bill Fuller said. “We love being a part of State College and have been part of State College for 20 years now. And, hopefully, we can stay there.”

The proposed apartment building, which will contain about 500 beds and range from studios to five-bedroom apartments, will be 65 feet tall with a fitness center and rooftop pool terrace. Although the proposed apartment building will be exceedingly large, wider than 200 feet at points, the building will be made to look like multiple structures.

An aerial rendering of what Core Spaces hopes its proposed apartment building will look like at 240 S. Pugh St. The building would replace the Days Inn and other businesses, with construction expected to begin next September.
An aerial rendering of what Core Spaces hopes its proposed apartment building will look like at 240 S. Pugh St. The building would replace the Days Inn and other businesses, with construction expected to begin next September. Publicly submitted plans by Core Spaces

In other words, the articulated building will have open space carved into it, a mural is expected to be painted on part of the structure, and Core Spaces intends to make the large building feel cozy and inviting as opposed to oversized and cold. More than 200 parking spaces will also be available underground for tenants. (The Days Inn’s current parking structure would also be demolished.)

“We didn’t just want it to read as one long, huge building,” said Jeff Zelisko, the project’s design architect. “We wanted it to read a series of compatible, contextual buildings.”

Core Spaces did not immediately respond to a CDT message that sought rent estimates for units in the building.

The real-estate developer has been busy in Happy Valley the last few years. In October 2019, it purchased five downtown apartment buildings and, among other projects, construction will soon start on a 12-story apartment building in the 400 block of East College Avenue.

Based on the proposed timeline for this project, the final land-development plan would be submitted before the new year. The building permit would be submitted by next June, and construction would start next September and finish up in June 2024.

Core Spaces does not yet own the aforementioned property, but it’s not unusual for developers to submit such plans when real-estate discussions remain underway, as long as they receive the owner’s OK. A spokesperson for the owner in this case, Centre Hotel Associates Ltd., did not return a message from the CDT seeking comment.

State College’s Design Review Board on Tuesday voted to advance Core Spaces’ preliminary plan to the borough Planning Commission. That commission is scheduled to publicly hear from Core Spaces during its 7 p.m. Thursday meeting.

Josh Moyer
Centre Daily Times
Josh Moyer earned his B.A. in journalism from Penn State and his M.S. from Columbia. He’s been involved in sports and news writing for more than 20 years. He counts the best athlete he’s ever seen as Tecmo Super Bowl’s Bo Jackson.
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