DEAL OF THE DAY: Gebroe-Hammer Associates Arranges Sale of 329 Units for $37.725M

By Anuradha Kher, Online News EditorPhiladelphia–Gebroe-Hammer Associates recently closed the sale of two Philadelphia rental properties totaling 329 units. The Courts (pictured), a 167-unit apartment complex located in the University City neighborhood, was sold for $22.35 million, and Fairmount Terrace Apartments, a 162-unit garden community near Center City, was sold for $15.375 million.Powelton Avenue LLC sold The Courts to The Courts LP and ASI Management sold the Fairmount Terrace Apartments.“The Courts is part of a very unique neighborhood of students, university professors, medical professionals, executives and long-time residents,” says Joseph Brecher, senior vice president, Gebroe-Hammer Associates. “It is an attractive investment because of its premier amenities and 24-hour security in this very urban area. Due to a limited supply of student housing in the vicinity of two major universities, this property is well-suited to accommodate the high density and demand associated with this constant supply of new tenants in a robust market.”The Courts is located at 3500-3540 Powelton Ave., and comprises three restored Victorian-era apartment buildings. It features a mix of one- and two-bedroom and studio units.The building retains its original details such as the intricate brickwork, cathedral ceilings, oversized windows and exterior porches, but contains up-to-date appliances, central air conditioning and a new fitness center. The rental rates for the area range from $980 for a studio to $2,450 for a two-bedroom/two-bath unit. At the time of sale, The Courts was 95 percent occupied.“First-class properties are in short supply, prompting investors to react quickly and decisively in their acquisitions of a complex like The Courts, which is well-occupied and beautifully maintained,” says Ken Uranowitz, Gebroe-Hammer’s managing director.Fairmount Terrace Apartments, located at 3601 Conshohocken Ave., features garden-style apartments with one- and two-bedroom layouts as well as studios. Each unit features a patio balcony, wall-to-wall carpeting, a fully equipped modern kitchen and spacious closets.“The aggressive pricing of Fairmount Terrace reflects the strength of this property, which boasts strong occupancy levels and unique amenities, in a market where prominent investors are aggressively enhancing their portfolios by leveraging the successes of their internal renovation and property management teams,” notes Eli Rosen, vice president, Gebroe-Hammer.Fairmount is a gated community and features amenities including laundry facilities, a swimming pool and gated on-site parking.According to Brecher, the buyer plans to make a multi-million dollar capital investment to upgrade amenities, common areas and individual units to reposition the property. The rents range from $850 for one-bedroom units to $1,050 for a two-bedroom unit. “Demand for upscale apartment living is at an all-time high throughout Philadelphia,” says Uranowitz. “As a result, solid for-sale multifamily housing properties are being acquired and upgraded by well-financed investors whose long-term strategy is to elevate the property’s class level and yield higher rents.”