Middletown-based Lift Development LLC, led by former GreenWorks Development LLC executives John Tierney and Matt Tunnell, have purchased the Nittany Village and Nittany Townhomes student housing properties from their former company.
"In terms of value, we picked up a $25 million piece of the portfolio," Tunnell said of the purchase, which included the Midtown Cinema in Harrisburg.
As part of the deal, Tierney and Tunnell have sold their partnership interests in GreenWorks, which is based in Harrisburg. They formed Lift in October.
The two student housing properties have 78 units that house about 300 Penn State Harrisburg students.
Lift already invested $1.8 million to buy 14 acres of contiguous land in Middletown and Lower Swatara Township. The company plans to build nearly 200 additional units that could house 567 students on nine acres, Tunnell said.
Middletown Borough Council is slated to consider the land development plans April 7.
"The new student housing brings the total to $55 million to $60 million in total real estate value," Tunnell said.
The goal is to begin construction this summer, with completion slated for August 2015.
Plans have not been developed for the additional 5 acres, he added: "We are not limiting Lift to just student housing."
Retail amenities targeted toward college students is a possibility, along with other commercial uses.
"We're happy to keep investing in the area," Tunnell said.
Since starting the company, the partners have hired three full-time and six part-time employees. At least two more full-time and three or four part-time employees will be added soon, Tunnell said.
As Lift develops the 14-acre tract, additional hires are likely, he said.