Developer Presents Final Plan for Condo Hotel in Downtown State College

A developer has submitted final plans for a condominium hotel in downtown State College , with the start of construction anticipated in early 2025.

James Venture and Jamison Morse, of Sewickley-based VS Development Consultants, presented to the State College Planning Commission on Wednesday the final land development plan for the nine-story, mixed-use building called Nittany Residence Club. Pending approvals and permitting, the building will be constructed at 321 W. Beaver Ave., at the corner of South Atherton Street and West Beaver Avenue.

The existing building on the property, which was most recently home to BioLife Plasma, will be demolished. BioLife closed its location there on June 1 , after a spokesperson said the business's lease was not renewed because the current owner is selling the property.

In its place, the developers plan to construct a new 95-foot-tall building with commercial space, the hotel lobby and guest amenities on the ground floor and a 66-unit luxury condo hotel on the upper eight floors, which will be sold to individual investors and rented out through a hotel operator.

Architectural plans label the retail spaces, which are primarily accessed from Atherton Street, as "Taproom" and "Coffee Shop." Venture indicated tenants have been identified and that the retail businesses would open around the same time as the hotel.

"The way we’re operating the hotel is we want to use that space as an amenity to the hotel. So the use of that property is very vital to how we are going to operate the hotel as a luxury hotel," Venture said. "We have local companies already identified that we sort of designed and negotiated with that are going to occupy that space for retail. They’re going to be elements that support the hotel."

Floors two through nine of the hotel will include 24 one-bedroom units, 30 two-bedroom units and 12 three-bedroom units, each with a balcony. The units will offer king and double-queen options and range in size from 753 square feet to 2,206 square feet.

The number of rooms has increased by two since a preliminary plan was submitted earlier this year.

"As we’re advancing design and pursuing owners/investors, it seems like a lot of people are migrating more toward the on-bedrooms than what we thought, so we did add a couple of those in there," Venture said. "The reason being is it seems a lot of people intend to purchase these as 'Hey, I'm not going to use it a whole lot. I'm still going to use it a little bit but Id like to use it primarily as an investment property."

Each unit will be sold to individual investors who would then be part of a condo association that hires a single hotel operator. The units become part of the hotel rental inventory when not in use by the owners.

Under association covenants, investors can use their units whenever they want but they will not permitted to use them as a permanent residence. Ventura said the covenants will prohibit full-time students from using them as a residence while at school.

Owners also can only rent the units out through the established program operated by the hotel management company, so they will not be able to rent them out independently or through services like Airbnb.

The hotel operator will be responsible for 24-hour on-site management, general operations, marketing and branding, reservations, staffing for the lobby and front desk, concierge services and housekeeping. Hotel revenues will be shared by the unit owners and management company.

Venture said at a meeting earlier this year that each individual owner will be required to pay taxes on their units.

The condos will have a consistent design with "high-end furniture, fixtures and equipment," offering a "five-star hotel experience," according to the presentation. They will have lockable owners' suites that are not accessible to guests when rented out by the hotel.

Plans also call for a 4,000-square-foot rooftop terrace for passive amenities, including seating, TVs, a fire table, wet bar, landscaping, turf and paver flooring and green roof elements. The green roof elements have been expanded since the preliminary plan and some of them are being used for stormwater management, Venture said.

On the ground floor, Venture noted that the corner of the L-shaped building has been carved out "to sort of activate that and provide an area for outdoor seating for the first floor retail/commercial that we intend to have.”

The current owner of the property have asked to take the sculpture and fountain that sits near the corner outside the existing building to be preserved at another location, Venture said.

The new building will include 68 parking spaces, the amount required by borough zoning, with 22 at surface level behind the hotel and 46 in an underground garage. Bicycle storage and ADA spaces will be located on both levels.

Access to the hotel and parking will be from Beaver Avenue. A space for ADA and ride-share pickup and drop-off will be provided at surface level.

A review determined a traffic impact study is not required for the project, but a highway occupancy permit from PennDOT will be needed to adjust the curb cut on Beaver Avenue for vehicle access.

The developers previously said that recent streetscape improvements along Atherton Street will be preserved or replaced if disturbed, and will be replicated on the Beaver Avenue side with new landscaping and lighting.

Design of the building will have a blue, white and gray color scheme, with white brick and stone on the ground floor, which will have a 15-foot setback, and black iron railings. The upper floors, which have a 25-foot setback, will utilize exterior insulation and finish systems, and energy-efficient windows will be installed throughout.

"We intend to spend a lot of money on the exterior facade to make the building look just as nice as the interior of the building," Venture said.

The anticipated project timeline calls for construction to begin in January 2025 and be completed by June 2026, with the hotel operational by fall 2026.

HOTEL BOOM

Nittany Residence Club is one of at least eight hotels in various stages of planning or construction around Centre County.

Nearby in downtown State College, preliminary work began in the spring on the Town Centre project , which will include a Canopy by Hilton hotel.

On Benner Pike in Benner Township, groundbreaking ceremonies were recently held for two hotels: a Tru by Hilton and a dual-brand Avid Hotel and Candlewood Suites .

Further down the road in Bellefonte, developers of the boutique hotel that will be part of the long-awaited Bellefonte Waterfront project are hopeful site work on the waterfront project can begin in the fall, but expect it will most likely be next spring. A brand partner has been selected for the hotel, but not yet announced, Hospitality Asset Management Company's (HAMCO) Edward Tubbs recently told StateCollege.com.

HAMCO is also the developer behind a Home2 Suites hotel planned as part of a proposed commercial development on Shiloh Road in College Township. A subdivision plan for that development was approved in June and a land development plan for the hotel is under review.

Nearby in the Dale Summit area of College Township, a Holiday Inn on Dreibelbis Street has been slowly progressing toward completion after a years-long construction delay.

And in Patton Township, the Board of Supervisors in May approved a final land development for an unnamed long-term stay hotel on Fox Hill Road near State College Regional Airport.

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