There's a buzz circulating around 3400 Chestnut St., and it's not just the drilling, sawing and hammering.

Construction on Domus, the luxury apartment complex developed by the Hanover Company, is progressing well, and University City residents are finally getting a good look at the newest addition to their burgeoning neighborhood.

According to Rich Tomosky, Hanover's project superintendent, about 150 construction workers are on-site on any given day this month, and roughly 25 percent of the development has been completed.

That estimate is based on how much of the project's $71 million budget has been spent.

Penn Director of Real Estate Paul Sehnert was quick to point out that "that's Hanover's money, not ours."

Collaborations between the University and the Houston-based Hanover Company began five years ago. Groundbreaking for Domus took place last October and the apartment complex was originally scheduled to be completed by December 2007.

By the time of the project's completion, now slated for summer 2007, residents can look forward to a heated outdoor pool and a large installation by artist Dennis Oppenheim, in addition to its 290 apartments and 23,000 square feet of retail space.

Other features will include a five-story parking garage, an Internet cafe and a private screening room.

Sehnert said that construction is nearly complete on the eighth and final floor, and the coming weeks will see the addition of a roof.

Other work includes installation of ducts, plumbing and stud framing throughout the building. Meanwhile, cranes are hauling weather-tight wall panels into place on the westernmost side of the building, which borders the Sheraton Hotel.

The Sheraton's close proximity to the construction site hasn't done anything to hurt that hotel's business, according to director of sales Kevin Cushing.

"We haven't had any complaints about the noise," Cushing said. He added that on one occasion workers began earlier in the morning than the city allows, but that generally construction has gone on without incident.

Ultimately, Domus' potential for enhancing the area far outweighs any inconveniences, or even competition, the luxury complex might present, he said, stressing that "whenever anything is built around here, that's a golden egg for us. It's exciting: Domus could set off a whole new dynamic for University City."