Work to start on new State College high-rise, the area’s first ‘condo hotel’
State College’s first “condo hotel” celebrated its groundbreaking ceremony Friday afternoon as the excitement for Penn State’s homecoming filled the air downtown.
The condo hotel, called the Nittany Residence Club, is planned for 321 W. Beaver Ave. (where the former Biolife building is located). The nine-story building will have 70 one- to three- bedroom units, and amenities like a private fitness center, covered parking and a lobby coffee shop.
Gary Brandeis, CEO of Scholar Hotels, which will oversee hotel operations, said the individual condominium owned and hotel project is the first of its kind in a college market. He said these types of projects are often seen in places like southern Florida, the Caribbean and Las Vegas.
“If you think about hospitality in resort areas, it’s not too dissimilar to a college market like State College and Happy Valley and Penn State. So it’s a groundbreaking opportunity. We’re the first to do it, and I think there’ll probably be some copycats after we’re done. And who knows, maybe we’ll do it in some other college markets as well,” he said.
The project is a great opportunity for the developers and owners of the units, but also for the community, he said. They’re redeveloping an older property and taking the unused area next to it and creating usable space. State College Mayor Ezra Nanes said the project reflects the demands the area sees for high quality investment properties for football weekends and other occasions.
“This redevelopment will increase the assessed value of this land, and that means that the borough will have more tax revenue, and that’s important because we have to pay for the municipal services that people know and love in this community. So this is a great thing for State College, and it is, of course, a boost to our local economy,” Nanes said.
Other Centre County business and development leaders, as well as elected officials, applauded the project and the anticipated boost to the local economy.
Greg Scott, president and CEO of the Chamber of Business and Industry of Centre County, said the Nittany Residence Club is an opportunity to build on the economic strength that comes from Penn State and keep it in the community.
“The Nittany Residence Club will definitely bring new life to downtown,” Scott said. “... It really strengthens the ties between Penn State and our local businesses, and it will give people who love this place truly a place to belong, not just as visitors, but as part of our community,” Scott said.
More than five million visitors came to Happy Valley last year, generating over $1 billion in visitor spending, Eric Engelbarts, executive director of the Happy Valley Sports and Entertainment Alliance, said. To continue welcoming those families, alumni and visitors, the area has to invest in high quality lodging options, he said.
That’s why, Engelbarts said, the Nittany Residence Club is a “meaningful” addition to the area.
“This project is more than new housing. Through its innovative model, the owners having the option to participate in a professionally managed hotel program, the Nittany Residence Club expands our hospitality landscape,” Engelbarts said. “Visitors will now have another welcoming, well managed option in the heart of State College. And that means more people staying longer, enjoying more of what Happy Valley has to offer and strengthening our local economy.”
About a third of the units are already sold, Erica Scott, realtor at Kissinger Bigatel and Brower Realtors, said, with prices ranging from $700,000 and up.
The project’s uniqueness comes from it being a “condo hotel,” which means the units will be sold through KBB and then owned by an individual — but they’ll then have the option to rent them out through a hotel program. That gives them a way to offset some costs, Scott said.
The units cannot be used as a full-time residence, which means they can’t stay there for more than eight consecutive months in a year, she said. Students are not allowed to live there.
The units will be “super luxury,” with high-end finishes and lobby that will have its own coffee shop and potentially an owners-only space. There won’t be any vacant first floor space, Scott said.
“What’s unique about this is this is all Penn Staters building something for Penn Staters. These are all alumni, they’re very enmeshed, and want to see the community do well on this corner,” she said. General partners on the project are Jim Venture, Jamison Morse, Brandeis, Subeg Singh, David Goldoff, Christian Hackenberg and Michael Mauti. Former Nittany Lions Hackenberg and Mauti have both purchased units, she said.
There’s been a lot of people who have purchased or want to purchase units so they can bring their family to Penn State sporting events but then also take advantage of things State College has to offer, like Arts Fest and other local events, Scott said.
With the groundbreaking on Friday, things are expected to get started soon and move quickly. The opening is anticipated for August 2027. The Biolife building will be demolished and a long-term lane restriction and sidewalk closure will be in place during construction.
