Nine story condominium hotel proposed for downtown State College, plans show

A new condominium hotel is proposed at a gateway intersection in downtown State College.

Plans for a nine story mixed-use building with commercial space and a 72-unit condominium hotel at 321 W. Beaver Avenue, State College have been submitted to the State College borough, according to its website.

The project proposes a mixed-use building located at the intersection of South Atherton Street and West Beaver Avenue, which is currently home to Biolife Plasma Services. The proposed building will have 4,760 square feet of commercial space on the ground floor and a condominium hotel with 72 units on the upper floors, according to the borough’s website.

The Biolife Plasma Services building would be demolished as part of the plan, and a new building would be constructed in its place, Gregory Garthe, senior planner for the borough told the Centre Daily Times in an email Thursday.

The plans were submitted by PVE, LLC of Sewickley, Garthe said, and the owner is listed as Haugh Realty, Inc. of State College.

The project narrative outlines the proposal and states the subsurface/basement level will be a parking garage with 46 spaces, as well as mechanical, utilities and storage. The first floor/street level will have frontage on both Atherton Street and Beaver Avenue, the narrative states. Some of the building will have a hotel lobby, guest amenities, retail space and restaurant use. More parking — 26 spaces — will be located on the ground level, behind the new building.

The second through ninth floors will be luxury hotel rooms. A portion of the rooftop will be an open-air amenity deck for residents and guests, the narrative states, and will have a separate seating areas with active and passive amenities.

What is a condominium hotel?

The project narrative states the building will be legally developed as a condominium and all the hotel suites and commercial units will be sold to individual investors — rather than a traditional hotel with a single owner.

“The hotel suites will be part of the hotel’s inventory to be rented to the public and operated by a single hotel management company. The ground floor commercial level of the building not utilized as a common element for hotel operation or amenities will be sold as separate commercial unit(s) and be owned individually and used for the purposes for which they are designated,” the narrative states.

One hotel management company hired by the association will manage the hotel operations. The hotel units will be managed and staff around the clock, according to the narrative.

The association covenants will state that individual owners can’t use their unit as a permanent residence but they can use their unit “whenever they would like,” the narrative outlines.

“But when they are not using their unit, their unit will be entered into the organized rental program administered by the Hotel Management Company. The covenants will also include provisions such that Owners will not be permitted to rent their units other than through the established Hotel Program through the Hotel Operator,” the narrative states.

Revenue from the hotel units rent will be shared by the individual unit owners and hotel operator. According to the narrative, the hotel operator will take a percentage for management and operational expenses; the unit owner will receive the remaining revenue.

Another tall building downtown?

Due to the size of the site, Garthe said it is not large enough for a 12-story “signature project;” nine stories is the highest that can be built there.

In October 2022 the council passed a zoning amendment that limited the development of some high-rise student apartment complexes. Developers can still build projects with a significant floor area of the building dedicated to nonresidential uses, Garthe said.

“The Fraser Centre is an example, but we haven’t had any similar proposals recently because it’s not economically viable for the developers because the housing component is what generates the most revenue,” Garthe said.

The plans have not been reviewed by the borough’s design board review or planning commission, although it was mentioned to the planning commission during Thursday’s meeting. The website states the boards will review it during their meetings on Feb. 6 and 7.