An artist’s rendering of the planned six-story office building with a ground-floor McDonald’s at 40th and Walnut.

A six-story mixed-use building is planned for the northeast corner of 40th and Walnut Streets, where a neighborhood fixture, McDonald’s, is currently located, according to an announcement by Penn’s Office of Facilities and Real Estate Services. The new, 50,000-square-foot facility will include a fully-modernized McDonald’s on the first floor of the building.

This announcement came after months of uncertainty about the future of the 50-plus year-old fast-food restaurant location popular among local residents and students, following the news that Penn was planning to purchase the land from McDonald’s for real estate development. According to a recently signed agreement between Penn and McDonald’s, the partners will share ownership of the first floor allowing for McDonald’s to reopen in a new 4,700 square-foot space.

Floors 2 through 6 of the building will contain office space that is anticipated to house Penn offices.

Penn has contracted Mosaic Development Partners, a Philadelphia-based, minority-certified commercial real estate development company, in conjunction with PZS Architecture and LF Driscoll Construction/Perryman Construction to complete the comprehensive redevelopment of 3935 Walnut St.

Construction is scheduled to begin early this year and the new building is anticipated to be open for operation in the Summer/Fall of 2024.