Philadelphia Portfolio Commands Aggressive Cap Rate
AMC Delancey Group's acquisition is a rare deal for Center City.
The apartment buildings are located at 914 Pine St., 1331 Pine St., 126 South 22nd St., 2205 Walnut St. and 2213 Walnut St., and offer a total of 36 units made up of studio, one- and two-bedroom floor plans.
The buyer, an affiliate of AMC Delancey Group, is planning to upgrade the portfolio.
The properties are well-located in the Rittenhouse Square, Fitler Square and Washington Square West neighborhoods of Center City, which are renowned cultural hubs of Philadelphia due to their high concentration of art galleries, theaters, restaurants and shops. Each distinctive building offers great access to public transportation.
“It is rare to see a Center City portfolio like this come to market, which is why the buyer stepped up to our list price within a day of marketing the asset,” Ken Wellar, managing partner of RRA, said in prepared remarks.
“The portfolio traded at an aggressive 4.3 percent cap rate on T-12 numbers but offered excellent value-add potential to the buyers,” noted Corey Lonberger, managing partner of RRA.
“There is significant upside in Rittenhouse Square, Fitler Square and Washington Square West, and the buyer will be capitalizing on that,” added Mark Duszak, director of RRA.
Image courtesy of Rittenhouse Realty Advisors