Joint Venture Grabs 116-Unit Luxury Rental Community in Suburban Philadelphia
- Apr 09, 2015
A luxury apartment complex in suburban Philadelphia was acquired by a joint venture between Los Angeles-based Lowe Enterprises and First Capital Advisors of Wheaton, Ill. JLL represented the seller, an affiliate of Morgan Properties of King of Prussia, Pa. The property was sold at an undisclosed price.
Located at 200 S. Line St. in Lansdale—a thriving submarket that is home to several major pharma companies, but has limited supply of multifamily properties as no new properties are currently under development—the Silk Factory Lofts is an adaptive reuse project of the former Interstate Hosiery Mills, a silk mill that was built in 1922 to produce women’s full-fashioned silk hosiery.
In 2004 the 145.046-square-foot industrial asset was added to the National Register of Historic Places and changed ownership shortly after. As previously reported by Patch.com, the property was transformed into apartments by Marathon Design & Construction LLC, of Narberth, doing business as Lansdale Holding Group Associates, LP. The developer paid $1.5 million for the former factory, according to data provided by PropertyShark.
Four years later the Silk Factory Lofts—which went into foreclosure in July 2010 after developers fell behind on their loan—was acquired by Morgan Properties in a sheriff sale at a bargain price from lender GE Business Financial Services, Inc.
The Silk Factory Lofts includes 116 luxury apartments in a combination of one, two- and three-bedroom units with open floor plans, modern finishes, high ceilings and large windows that maximize the use of natural light. The list of amenities includes a fitness center, a community room and landscaped courtyards. According to a press release, the new owners plan to upgrade unit finishes and complete improvements to common areas. The apartment complex was 99 percent occupied when the deal closed.
“The Silk Factory Lofts feature architectural character and desirable open floor plans in an area that primarily offers garden style apartment properties. It is one of the few historic properties in the area that has been converted to multifamily use,” said Andy Sands, managing director of LEI and head of the firm’s multifamily activities, in a prepared statement.
Images via the Silk Factory Lofts’ Facebook Page