Philadelphia Multi-Family Community with Opportunity Zone Development for Sale

Monday, March 11, 2019

 

Holliday Fenoglio Fowler, L.P. (HFF) is marketing an 88-unit, Class A multi-housing property for sale that is conveniently located within a Federal Opportunity Zone in Philadelphia’s high-growth Francisville neighborhood. The offering – The Civic – sits on one parcel currently zoned CMX-3 with an additional 26,518 square feet of developable land (Phase II) that allows for an additional 233,755-square-foot development by right. This truly unique opportunity presents qualified investors the ability to acquire a Class A apartment community and adjacent development parcel while benefiting from the highly desirable Federal Opportunity Zone tax benefits.

The Civic comprises five levels plus one lower level. The foundation of the building was designed for nine stories while only five were built. This provides the opportunity for additional development on top of the existing building, subject to zoning variances. The existing multi-housing property consists of 88 brand-new, spacious, micro-studio, one- and two-bedroom apartments; 33,000 square feet of commercial space; and a state-of-the-art amenity package featuring a fitness center with yoga room, rooftop lounge, doorman/front desk concierge, business suites, pet washing room, bike storage, golf simulator, game room and more. Phase II presents the opportunity to develop by right up to 233,755 square feet on the same parcel. The CMX-3 zoning provides for a variety of creative development scenarios and the flexible zoning and fundamentals support the development of residential, commercial and retail spaces for the Francisville neighborhood to benefit from.

The apartment community for sale is situated at 1600 West Girard Avenue in Philadelphia’s Francisville neighborhood, which is regarded one of the hottest submarkets in the city due to its convenient access to Center City as well as access to highways and public transportation, affordable cost of living, amenity rich neighborhood and accessibility to national employers.

Multi-Family Community for Sale Investment Highlights

  • Development Potential:  The Civic offers the rare opportunity to purchase a nearly completed asset with an additional development opportunity in the desirable and up-and-coming Francisville neighborhood of Philadelphia. The cash flow from the existing asset combined with the development potential presents an extremely rare investment opportunity with upside potential.
  • Tax Abatement:  In addition to the in-place abatement at Phase I, The Civic Phase II qualifies for a 10-year tax abatement of real estate taxes, which is available in the city of Philadelphia for new development. The abatement is limited in whole or in part to that value which has been added to the multi-family property for sale due to the qualifying improvements. The land value remains fully taxable during the abatement period.
  • Federal Opportunity Zone:  The site is positioned in a Federal Opportunity Zone, which was designed by Congress in an effort to stimulate economic and job growth. This tax reform proposal was the only bipartisan legislation passed in the new Tax Cuts and Jobs Act and is already deemed as a success for the future outcome of this program. The new provision allows investors to roll their capital gain tax liabilities into new investments on a tax deferred basis through these Qualified Opportunity Funds. Unlike a 1031 Exchange, the IRS does not require the total proceeds from a sale to be reinvested, the law only requires the gain to be reinvested in a Qualified Opportunity Fund. While the majority of the designated opportunity zones are in peripheral locations where projects are not feasible, The Civic Phase II presents a rare opportunity to develop in a location that benefits from both a central site and Opportunity Zone tax incentives.
  • Luxury Living with State-of-the-Art Amenities:  The Civic offers state-of-the-art unit finishes and amenity package that will set the bar for the submarket as the premier apartment complex in the competitive environment. These unit consist of loft style floorplans with best-in-class interior finishes featuring quartz countertops, stainless steel appliances, in-unit washer dryers and wood plank flooring throughout. The complete amenity package offers a resident lounge, fitness center, green roof, conference room and much more.

To learn more about this Class A multi-family community for sale in Philadelphia’s MSA or other commercial real estate listing in Philadelphia and the Mid-Atlantic, please contact Mark Thomson, Carl Fiebig or Francis Coyne in HFF’s Philadelphia office.

To view HFF’s current real estate investment sales listings, please click here.

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