JV Shells Out $118M for Philly Community
- Jul 14, 2017
A joint venture between Korman Residential and The Carlyle Group acquired 3737 Chestnut in the University City district of Philadelphia for $118 million from Radnor Property Group. Radnor completed the 26-story, 276-unit community at 38th and Chestnut Streets in 2015, and the property is fully leased.
The community offers one- and two-bedroom units with views through floor-to-ceiling windows. Common amenities include a rooftop deck with outdoor grilling area, billiards and game room, entertainment room with a large LED TV, fitness center and bike storage. The property is next to the Hildebrandt Early Learning Center.
The apartment tower is part of a mixed-use project by Radnor on church-owned land that stabilized the historic Philadelphia Episcopal Cathedral, which is near the apartments. The project also involved the building of a new three-story office building, community center and childcare center with a rooftop playground for the church.
Meds and Eds
3737 Chestnut illustrates the strength of Philadelphia’s “Meds and Eds” sector—healthcare facilities and university-related activities—where growth is projected to continue, according to Radnor. In the University City district alone, the population of 22- to 24-year-old residents is over 53,000, with nearly 44,000 enrolled in colleges in the area.
The growth of the district is also reflected in rent prices, which have held steady at 3737, averaging a gross rent per square foot of $3.