Value-Add Apartment Building for Sale in West Philadelphia

Monday, June 18, 2018

Holliday Fenoglio Fowler, L.P. (HFF), on behalf of the owner, is marketing for sale St. Jude Apartments, a 36-unit multi-housing property situated in the expanding West Philadelphia/University City submarket. Constructed in 1925, St. Jude Apartments consists of well-designed studio and one-bedroom units, many of which contain original kitchen and bathroom finishes. Current ownership has completed several capital projects to the historic brick and Tudor revival building, allowing investors the ability to focus on creating value through interior unit renovations.

St. Jude Apartments is a single building zoned RSA-3 on an 8,250-square-foot lot at 5016 Pine Street in the West Philadelphia/University City submarket, the fastest growing submarket in Philadelphia. The apartment building for sale is positioned in the path of growth and offers residents access to an abundance of developing industries and employment opportunities. Recently delivered projects near the University of Pennsylvania, Drexel University and Children’s Hospital of Pennsylvania account for several million square feet of new office, research, residential and medical facilities, resulting in a thriving and vibrant 24/7 location that is quickly establishing itself as one of the top residential locations in the city.

The apartments feature well-designed studio and one-bedroom floor plans, double-paned windows, white appliances, electric range with hood and either porcelain or ceramic tile in bathrooms. Community amenities include elevator service, laundry facilities, controlled access, security camera system and cable ready all in a vintage building constructed in 1925.

Historically 100 percent occupied, ownership recently increased rents by $25 in December, further alluding to the growth of the location. Value-add investors can continue to raise rents organically or focus on value creation in the high-growth submarket. St. Jude Apartments is offered free and clear of debt, allowing investors to take advantage of traditional bank or agency financing.

Value-Add Apartment Property for Sale Investment Highlights

  • Stabilized Cash Flow with Value-Add Potential:  St. Jude Apartments provides investors a well-maintained, turn-key investment opportunity that can be owned and operated “as is,” while also presenting value-add investors the opportunity to enhance revenue through in-unit renovations.
  • Recent Capital Infusion:  St. Jude Apartments is free of significant capital requirements, as capital has been routinely deployed throughout the asset. Ownership recently replaced the lobby floor, basement floor, recarpeted all hallways and painted the stairwells. Additionally, they have installed wood plank flooring throughout the units, purchased a new exterior awning to improve curb appeal and recently installed a Master Lock® key system enabling simplified property management and increased security.
  • Stabilized Asset at Significant Discount to Replacement Cost:  St. Jude Apartments provides a unique opportunity for investors to enter the submarket or grow their existing portfolio at a significant discount to replacement cost.
  • Strong Rental Submarket Demand:  The property is ideally positioned in the path of growth along the rapidly growing West Philadelphia/University City submarket, providing residents access to an abundance of education, transportation and employment options. University City is home to more than 43,000 students who attend the University of Pennsylvania, Drexel University and the University of Sciences. These universities — and the jobs that support them — serve as catalysts for consistent demand for affordable apartments. Residents are further attracted to this location due to its accessibility to public transportation, as the property is only one block from the Route 42 bus stop, 0.2 miles from a Zipcar rental and 0.3 miles from the SEPTA’s Route 34 Trolley, all which provide swift transportation to employment in University City and the Philadelphia CBD.

For more information on this commercial real estate listing or other multifamily properties for sale in Philadelphia and the Mid-Atlantic, please contact Carl Fiebig, Francis Coyne or Mark Thomson in HFF’s Philadelphia office. To view HFF’s current real estate investment sales listings, please click here.

By Topics