Construction will soon be getting underway for a condominium hotel in State College that will be the first of its kind in a college market.
Project developers, local leaders and community members on Friday afternoon celebrated a ceremonial groundbreaking for the Nittany Residence Club, a planned nine-story, 70-unit building at the corner of South Atherton Street and West Beaver Avenue.
The building offers one to three-bedroom luxury condominium units for sale to individual owners, who can use them as part-time or vacation homes but not as permanent residences. When the owner is not staying at the condo, they can choose to place it in the hotel inventory for overnight guest stays, with the owner receiving income and a percentage going to the hotel operator.
Penn State alumni Gary Brandeis, Jim Venture and Jamison Morse are developing the project, and Brandeis’ Scholar Hotel Group will operate the hotel.
“You find a lot of these projects in southern Florida, the Caribbean, Las Vegas and markets like that,” Brandeis said. “But this is the first time someone is doing it in a college market. And 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 will probably be some copycats after we’re done. And who knows, maybe we’ll do it in some other college markets as well.”
Plans for the project were introduced in early 2024 and approved by the borough later that year.
With the project slated for completion in 2027, about a third of the units have already been sold, according to Erica Scott of Kissinger, Bigatel and Brower Realtors, the real estate agent for the condos.
Many of those who have purchased units are younger families and professionals with Penn State ties, like former Nittany Lion football players Christian Hackenburg and Michael Mauti.
“We’ve got younger families that now have children that want a place to go because they’re alumni and it’s a memory,” Scott said. “So we’ve got a really cool clientele mix, but it’s all people who love State College.”
The condo hotel will be constructed on the site of a building that was most recently home to BioLife Plasma, and will include a grand lobby, fitness center, concierge, laundry, storage units, housekeeping, around-the-clock security and an underground parking garage. The developers are in talks with a local coffee shop for a public commercial space, Scott said.
State College Mayor Ezra Nanes said the new facility will boost the borough’s tax base and economy.
“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,” Nanes said. “So this is a great thing for state policy, and it is, of course, a boost to our local economy.”
Condo owners — who have the option of selecting high-end “signature” and “premier” finish packages, according to the Nittany Residence Club website — cannot use their units as a year-round residence, with a limit of eight months per year. They also can only rent them through the hotel program and cannot use services like Airbnb. And they cannot be used as student residences.
Nanes said the project helps to meet a demand.
“It’s a destination that blends the comforts of home with the excellence of a professionally managed hotel experience,” Nanes said. “And I have to say, this project reflects the demands that we are seeing in the community. People want high-quality investment properties for football weekends and other occasions to come back, and they want to also make those investments in the community and turn those investments into real estate. They want to come around and have opportunity to monetize them, and this is combining all of those. So it’s something that we see very much a demand for here at State College.”
It’s also a boon for the Centre County tourism industry, adding to the occupancy tax revenue that funds the Happy Valley Adventure Bureau’s tourism and hospitality promotion and to local hotel inventory for the more than 5 annual million visitors to the region who generate $1 billion in spending, said Eric Engelbarts, executive director of the Happy Valley Sports and Entertainment Alliance.
“When we think about those millions of visitors, our truth becomes clear,” Engelbarts said. “To continue welcoming them, we must also continue to invest in high-quality lodging options. That’s why the Nittany Residence Club is such a meaningful addition to our community.
“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. 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.”
The project is an opportunity “to build on the economic strength that comes from being home to Penn State,” said Greg Scott, president and CEO of the Chamber of Business and Industry of Centre County.
“The Nittany Residence Club will definitely bring new life to downtown… to this site, but in general 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.
Demolition of the existing building on the site is expected to begin in the coming weeks and project completion is anticipated in the fall of 2027. Those interested in purchasing a condo unit can contact Erica Scott at Erica1kbb@outlook.com, 814-234-4000 ext. 3349 or 412-334-1818.
For Brandeis, it’s a different kind of project from his other hotels in the State College area. His Scholar Hotel Group owns the Hyatt Place, Scholar State College, Courtyard by Marriott, Residence Inn by Marriott, the Nittany Lion Inn and the Penn Stater Hotel & Conference Center, which on Thursday celebrated the completion of a multimillion-dollar renovation.
“I think it’s gonna be a project that sets the standards for other things that happen here in State College,” Brandeis said. “We’re raising the bar with hospitality, a new project, a new vision and it’s just going to make our community better. It’s going to bring more people and I think what the difference here is that these are going to be owned by individuals. Those individuals are buying these units, they’re investing in the community and that’s different than a typical project.”
