Although Penn has a stake in more than a thousand off-campus apartments, its ownership interest is not often brought under the spotlight.
This changed, at least in part, two weeks ago, when residents of the top three floors of Chestnut Hall found out that their building would be undergoing construction while they were still living in it.
Penn students living in the popular off-campus apartment building at 3900 Chestnut St. reacted quickly to the management's letter warning of an upcoming "renovation phase" in which they would need to change apartments within the building.
Students organized an unofficial tenants' association, posted notices on bulletin boards about their new Yahoo group and met with an attorney through Penn's Office of Off-Campus Living to discuss possible legal action.
Although Penn is a co-owner of the property, the University does not manage the daily operations of Chestnut Hall, said Paul Sehnert, director of real estate development for Penn's Facilities and Real Estate Services.
These operations are left to the Denver-based Apartment Investment and Management Company, one of the largest apartment building operators in the nation.
"They arrange for the financing, they control the construction, they manage the setting of the rents and the hiring of the people who run the building, the repairs and maintenance," Sehnert said. "They are, in a sense, the managing general partner and the majority owner."
Yet as students began to express their frustrations about miscommunication with the building's management, the University took an interest in meeting tenants' concerns.
"As a partner we certainly are interested that all residents are treated fairly and communicated clearly to accomplish the task," said Ed Datz, director of real estate operations for Penn's Facilities and Real Estate Services.
Datz said his office is sensitive to the residents' needs to understand and to be a part of the decision-making process.
AIMCO hopes that the partnership with Penn in managing Chestnut Hall "is the beginning of a long relationship," said spokeswoman Judy Stowell.
At this time, however, there are no current plans on the books to partner with AIMCO in the future, Sehnert said.
Penn chose to partner with AIMCO in operating Chestnut Hall "because of their financial stability and their track record," Sehnert said, adding that AIMCO has successfully renovated and repositioned several other older properties in Philadelphia.
Both the University and AIMCO planned to upgrade the facilities at Chestnut Hall since their partnership started last May.
"They're putting a significant upgrade to the building for life safety and core infrastructure to the building, which needed significant repair," Sehnert said.
Still, he expressed Penn's interest in ensuring that Chestnut Hall tenants are treated fairly.
"Their effectiveness in dealing with these issues are paramount to us," Sehnert said. "If students are unhappy, that colors how we think about that."
The University also owns properties managed by University City Associates and Campus Apartments, which manage over 1,500 off-campus housing units according to the Penn Consumer's Board's landlord profiles.
The Daily Pennsylvanian is an independent, student-run newspaper. Please consider making a donation to support the coverage that shapes the University. Your generosity ensures a future of strong journalism at Penn.
DonatePlease note All comments are eligible for publication in The Daily Pennsylvanian.
