40th and Walnut Streets Redevelopment
A six-story, 50,000 GSF facility, is planned for the Corner of 40th and Walnut Streets and will include a ground floor McDonald’s restaurant.
PHILADELPHIA, PA (January 13, 2023) – The University of Pennsylvania (Penn) and McDonald’s USA, LLC (McDonald’s) announced the mixed-use redevelopment of the existing McDonald’s structure located at 3935 Walnut Street. This new six-story facility will include the reopening of a fully modernized McDonald’s restaurant on the first floor of the building.
As part of a broader ongoing investment by Penn in the 40th Street Corridor, the University of Pennsylvania purchased the land from McDonald’s and created a condominium interest. The agreement includes shared ownership of the first floor allowing for McDonald’s to return, and providing a new 4700 SF space for the restaurant that replaces the existing 50-plus-year-old structure. Floors 2 through 6 of the building will contain office space that is anticipated to house offices for Penn student life. While McDonald’s will remain on site, the University can utilize the upper floors for administrative purposes currently in the center of campus, while repurposing those internal campus spaces for more student-facing use. McDonald’s looks forward to continuing to serve the community as part of this new development.
Penn has teamed with Mosaic Development Partners (Mosaic) in conjunction with PZS Architecture and LF Driscoll Construction/Perryman Construction (D/P) to complete the comprehensive redevelopment of 3935 Walnut Street. Mosaic, a Philadelphia-based, minority-certified, commercial real estate development and project management company, focuses on ground-up development and adaptive reuse of commercial properties in urban communities. Through partnering with Penn on this project, Mosaic will continue to build with community and cultural sensitivity in mind, while helping to revitalize the neighborhood for all.
Designed as a turnkey real estate model project, 3935 Walnut Street will be a highly flexible space, making it functional and operational. The building’s exterior will be comprised of a brick veneer with large windows to accommodate the office component. Penn is also working with McDonald’s to ensure that the signage and aluminum storefront is consistent with the design needs on the first floor.
This new mixed-use building is the latest investment by Penn in the University’s ongoing investment in the 40th Street Corridor, which began more than 20 years ago. “This project will be additive to the area,” said Ed Datz, executive director of real estate at the University of Pennsylvania. “We are thrilled to work with McDonald’s in the repositioning of this pivotal intersection while ensuring the restaurant reopens and remains a fixture within the surrounding community,” said Datz. Construction is scheduled to begin early in the new year as part of Penn’s agreement with McDonald’s and is anticipated to be open for operation in the summer/fall of 2024.
Media Relations Contact: Jennifer Rizzi, Communications Director, Penn Facilities & Real Estate Services; 215.573.6107, firstname.lastname@example.org