A joint venture between The Carlyle Group and Alterra Property Group has acquired The Commonwealth, a 98-unit, 15-story multifamily building in Philadelphia, from Invesco Real Estate, for $29.7 million.
HFF facilitated the deal on behalf of the seller and also secured financing for the buyer. The building was 99 percent occupied at the time of the sale.
“It was a historic building at an attractive basis below replacement cost in a great location in Center City Philadelphia with rental upside,” Francis Coyne, HFF’s director, told Multi-Housing News. “It is extremely rare to find a property of this size with value-upside in a location like this in Philadelphia, creating a captive audience and significant demand.”
As such, HFF conducted 31 tours of the building, which resulted in 18 different offers.
The high-rise’s units average 711 square feet and boast granite countertops, stainless steel appliances and wood plank flooring. The property also offers an 8,247-square-foot retail component, which is currently leased to 7-Eleven and Mitchell & Ness Nostalgia Co.
Located at 1201 Chestnut St., the property was originally built in 1906 as an office building and was transformed into apartments by Alterra Property Group in 2012. Once the restoration was complete, Invesco Real Estate acquired the property for $23.4, according to Yardi Matrix data.
Situated in Midtown Village, The Commonwealth’s location has a Walk Score of 99 and is easily accessible to Center City and numerous transportation options.
According to Coyne, the location and the neighborhood played a large role in the demand. “The resurgence of East Market Street, combined with the appeal and stability of Midtown Village, made it extremely desirable and provided runway for future rental growth,” he said.
Joining Coyne on the deal was HFF’s Senior Managing Director Mark Thomson and Senior Director Carl Fiebig. The firm’s debt placement team representing the joint venture was led by Managing Director Ryan Ade.
In February, Invesco Real Estate acquired The Harlo, a mixed-use multifamily property in Boston’s Fenway neighborhood, for $150 million.