How Sale of Philly Property Profited from Location
A look at one of Rittenhouse Realty Advisors' biggest sales of the year.
By Jeffrey Steele, Contributing Writer
Philadelphia—The Corinthian Apartments, a 19-unit property in the increasingly popular Francisville neighborhood of Philadelphia, has sold for $2.5 million. The announcement was made by Philadelphia-based Rittenhouse Realty Advisors.
Featuring a blend of studio, one-, two- and three-bedroom apartment units, The Corinthian Apartments features a shared courtyard area. The property was fully occupied at the time of the sale and traded for more than $131,000 per unit.
“This was one of the highest sales for the year of construction,” Rittenhouse Realty Advisors managing partner Ken Wellar told MHN. “We sold a brand new building last year at $238,000 a unit.”
The Corinthian Apartments was constructed in 1920, and renovated in 2003.
The stunning revitalization of the Francisville market, a nearly 30-block enclave in north Philadelphia bordered by Broad Street and Corinthian, Fairmount and Girard Avenues, has pushed buyers to pay aggressive CAP rates. “The trailing numbers showed a very low CAP rate compared to recent sales at a 5.7 CAP,” Wellar said.
At the time of the sale, rental rates on one-bedroom apartments in the property stood at $1,200 a month, while two-bedroom apartments went for $1,500 monthly.
The Corinthian Apartments is well located to serve those residents who prefer public transportation. The property is across the street from a bus line and the trolley, and Francisville is accessible to Center City Philadelphia by subway.
Why is there increasing interest in Francisville? According to Wellar, “Center city is pushing north [and] Temple University is pushing south.”
This is the third sale Rittenhouse Realty Advisors has closed in the Francisville nook.
“Francisville is Philadelphia’s most promising and invigorated neighborhood, due to its strategic location bordering Fairmount, Spring Arts, The Loft District and Temple University,” said Mark Duszak, the firm’s director. “The area has attracted a tremendous number of investors trying to capitalize on this growth.”
