Rare Student Housing Opportunity | 31 Rooms | Penn State University

Highlights:

• Penn State University Location: In the heart of Downtown State College’s fraternity/sorority district, just minutes from the Pennsylvania State University campus.
• 8.67% Current Cap Rate | 9.47% Pro-forma Cap Rate (Fall 2027): Strong net operating income supported by rent, cleaning, laundry, and parking fees.
• Seven-Year Master Lease: August 2024–August 2031, currently in its third year. Rent is collected two months in advance, with occupancy incentives included.
• 62-Occupant Capacity: Zoned for 62 occupants, with 31 bedrooms across three levels and commercial bathroom facilities on each floor.
• Grandfathered Greek Use: Established fraternity/sorority use, with other student housing opportunities to explore. Newest and last due to zoning restrictions.
• Extensive Amenities: Commercial kitchen, large dining area, great room, library/billiards room, exercise room, indoor balcony, and finished lower level with walkout access to an outdoor patio.
• 27 Parking Spaces: Currently rented.
• ​Recent Improvements: New roof (2025), new rear fence (2026), renovated upper-level gender-neutral commercial bathroom (2026), brand new exercise room with rubber flooring and mirrored wall (2026), and various other touch ups.

Description:

Built in 1989 and located just off the Pennsylvania State University campus, 329 E Prospect Avenue is Downtown State College’s most recently constructed fraternity house. With its Greek use grandfathered in and current zoning prohibiting the construction of new Chapter Houses, it offers a rare opportunity to acquire a property that cannot be replicated under existing zoning.

The property is currently occupied by Alpha Phi Delta fraternity, which is in the third year of a seven-year master lease. The existing lease is expected to remain in place following the sale, providing an established tenancy for the new owner. In addition to its current fraternity or sorority use, the property's layout and facilities may support other student housing arrangements.

Situated in the heart of the fraternity district, the property offers approximately 15,452 square feet across the finished main, upper, and lower level. It features 31 double-occupancy rooms, commercial bathroom facilities on each level, and a commercial kitchen with a personal chef currently serving the fraternity.

Recent updates done in 2025 include a new roof. Improvements completed in 2026 include a rear fence, a renovated third-floor gender-neutral commercial bathroom, brand new exercise room with rubber flooring and a mirrored wall, and various touch-ups throughout. A 32-camera surveillance system serves the building.

Gathering spaces include a great room, library/billiards room, dining area, indoor balcony, and finished lower-level rec area with a built-in bar and walkout access to a large patio and rear yard. The property also offers 27 parking spaces.

The property's location provides convenient access to Penn State and Downtown State College, approximately a 10-minute walk to College Avenue, 15-minute walk to Old Main, and a 5-minute drive to the Bryce Jordan Center and Beaver Stadium.

The building’s grandfathered Greek use supports continued fraternity or sorority occupancy, with other student housing opportunities to explore. Don’t miss the chance to own this historic and rare opportunity!

Video: https://drive.​google.​com/file/d/15-MGvKRmkXKrANIJBf0-CFR1um70PK7r/view?usp=sharing
Website:https://greekmansions.​wixsite.​com/prospecthouse

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