PHILADELPHIA-Radnor Property Group and the Philadelphia Episcopal Cathedral will join in breaking ground this week for an unusual “mixed-use” development in University City.

The 326,000-square-foot development has three major components:

• a 25-story residential tower
• a new Episcopal Cathedral Center, including a three-story office building, a community center, and an early-learning childcare center for the neighborhood
• improvements to the historic Cathedral building.

The private development company and the nonprofit Cathedral will hold a Thursday ceremony at the Cathedral to mark the start of work on the $110 million project. The groundbreaking will at 13-19 South 38th Street at Ludlow, in the University City neighborhood.

"This site was immensely desirable to us because it's one block from the University of Pennsylvania's campus and hospital complex and just a few blocks from Drexel University,” said David Yeager, president of Radnor. “It's very exciting to be part of University City's 'Eds and Meds Corridor,' which is growing rapidly into the second downtown of Philadelphia."

The 287,000-square-foot apartment building will house 276 units designed for graduate students and professionals, and have retail space on its ground floor. To be known as "38 Chestnut," the building will offer studios, one- and two-bedroom apartments.

Amenities are to include a fitness center, activity spaces with a full kitchen and a bar, an audio-video entertainment room; and a "green" roof with a Zen Garden and outdoor lounge.

Occupancy is scheduled for summer 2015.

The three-story office building is also to have ground-floor retail. It will rise just west of International House and will provide 15,000 square feet of rental space.

The new buildings will each have access to underground parking to supplement street and public parking.

A plaza in front of the office building will offer chair-and-table seating.

Radnor, basd in Wayne, PA, is a general partner in the project and also the developer. Assurant, Inc. of New York City, a financial and insurance benefits company, is co-general partner, providing investment capital.

The Episcopal Cathedral Center owns the land being developed. The new construction on this land will create an income stream for the Cathedral. The funds are to go toward the Cathedral's mission of service and care for those most in need in the community.

Also, funds will be allocated to improve and maintain the historic Cathedral over the long term. Handicapped accessibility will be added to the Cathedral Center and the bell tower is to be upgraded.

"The way is clear now for us to expand our already substantial social ministries to strengthen the well-being of the local community,” said the Cathedral's dean, The Very Rev. Judith A. Sullivan.

The undercroft of the church will house a new early learning childcare center, open to the public and operated by Hildebrandt Learning Centers, the largest childcare operator for non-profits in Pennsylvania. The childcare facility can accommodate 110 children, with scholarships available for eligible families. A playground is to be installed on the roof of the office building.

The development team includes numerous Philadelphia design firms, including BLT Architects, Bala Consulting, The Harmon Group, Boles Smyth Associates, Thornton Tomasetti, TRC and SPG3 Architects. INTECH Construction is the construction manager. Residential leasing and property management will be handled by Bozzuto Management Co., and retail leasing by CBRE Fameco. The development's mortgage banker is Carey, Kramer, Pettit, Panichelli and Associates, and construction lending is provided by First Niagara Bank and RBS Citizens.

The Cathedral Center project is owned by the Episcopal Cathedral and benefits from the New Markets Tax Credit Program. Established by Congress, the program attracts investment capital to low-income census tracts for economic and community development purposes. It fosters the development of urban mixed-use projects and community facilities. Funding for the Cathedral Center project is provided by The Reinvestment Fund, PNC Bank, Commonwealth Cornerstone Group and Boston Community Capital.