KKR, Mack Buy Philly Luxury Asset

Presidential City. Image courtesy of Post Brothers

A joint venture between KKR Real Estate Select Trust (KREST) and Mack Real Estate Group (MREG) has acquired Presidential City, an 1,015-unit luxury community in Philadelphia, for $357 million. KREST bought the asset through its closed-end fund, KKR Real Estate Select Trust Inc. JLL Capital Markets represented the seller, Post Brothers.

The Presidential City buy marks the second Philadelphia multifamily acquisition for the KREST-MREG partnership. In a separate, concurrent transaction, KREST further added to its portfolio with the purchase of a 365-unit, Class A community in Brooklyn.

A Philadelphia community with luxury amenities

The four-building, 19.9-acre apartment community came online in 1950. Post Brothers picked up the asset in 2012 and implemented a full gut modernization plan at the property, converting it to the current Class A asset.

Sora Pool Club. Image courtesy of Post Brothers

Presidential City features a mix of one-, two- and three-bedroom units, as well as studios and penthouses, averaging 794 square feet, according to Yardi Matrix information. Additionally, the community comprises a 41,000-square-foot amenity center dubbed Sora Pool Club and Spa, an office building and 10,000 square feet of retail. MREG subsidiary Mack Property Management will be handling property management operations.

Located at 3900 City Ave., Presidential City is close to the intersection with Interstate 76, providing easy access to other districts in the city and the metro area, with downtown Philadelphia some 7 miles southeast. The City Avenue Shopping Center is roughly 4 miles from the property.

The JLL team representing Post Brothers was led by Senior Managing Directors Mark Thomson, Jose Cruz and Carl Fiebig, Senior Director Fran Coyne and Director Tyler Margraf. Earlier this year, Thomson and Coyne were part of a JLL team brokering the sale of a 186-unit Philadelphia-area community.