6 South 43 Street A 14-Unit Apartment Investment Opporunity...
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University City Apartments 6 South 43 rd Street Philadelphia, PA A 14-Unit Apartment Investment Opporunity In the Heart of Philadelphia’s Education Hub Drexel University - 1.1 miles University of Pennsylvania - 1.1 miles University of the Sciences - 0.6 miles
Transcript of 6 South 43 Street A 14-Unit Apartment Investment Opporunity...
University City Apartments6 South 43rd StreetPhiladelphia, PA
A 14-Unit Apartment Investment Opporunity In the Heart of Philadelphia’s Education Hub
Drexel University - 1.1 miles
University of Pennsylvania - 1.1 miles
University of the Sciences - 0.6 miles
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LOCATION OVERVIEWThe property is within walking distance to the University of Pennsylvania, Drexel University and the University of the Sciences. It is located directly across the street from Drexel’s Vidas Athletic Complex.
INVESTMENT HIGHLIGHTSThis offering represents an outstanding investment opportunity for many compelling reasons:
• Low capital needs and ease of management: The property has been 100% rehabbed with all units receiving new electric, windows, kitchens and bathrooms. Each unit has its own heating and air conditioning unit with electric costs paid by the tenant. The property was renovated in 2014 and has six years remaining on real estate tax abatement.
• Located in the thriving, diverse, and urban Spruce Hill neighborhood in University City: The rental market offers a multi-dimensional demand created from the employees and students from the universities, major hospitals, and other employers in the area. REIS notes an 8% effective rent growth rate for the market over the past year which emphasizes the rental demand in the area. The property’s current occupants are graduate students at nearby universities as well as non-students.
• Nearby Amenities: The property is strategically located just one block from the Vidas Athletic Complex, which serves as home to Drexel University’s soccer, field hockey, and lacrosse teams. In addition, the complex is three blocks from an ALDI Supermarket and eight blocks to Clark Park and The University of Sciences. 6 S. 43rd Street is also only two blocks for accessing LUCY – SEPTA’s Loop Through University City bus route which provides easy access to The University of Pennsylvania, Drexel University, and The University of The Sciences.
• Edge over competing properties: 6 S. 43rd Street has an advantage over competing properties because of its modern updates and its gated entrance providing security to residents.
• Room to raise rents:The current owner has not been aggressive in raising rents despite having superior product to competition. According to REIS, the studio unit rents are currently 18% below market with one bedroom rents 5% below market.
• Excellent basis:The property is available for sale at an asking price of $1,630,000 which equates to $116,725 per unit and a 6% cap on 2016 NOI and proforma NOI. Sale comparables for new apartment complexes in the area average over $260,000/unit. This property will sell for a price which represents a significant discount to replacement cost.
Current In Place Rents
Monthly Rent Rent PSF
Studio $ 681 $ 1.70
1 Bedroom $ 840 $ 1.36
Competing Properties, from REIS
Monthly Rent Rent PSF
Studio $ 950 $ 2.01
1 Bedroom $ 991 $ 1.43
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©2017 Avison Young - Philadelphia LLC. All rights reserved. The information contained herein is believed to be true; it has not been verified and as such, cannot be warranted nor form any part of any future contract.
avisonyoung.com
AVISON YOUNG
Additional Information May be Obtained from the Seller’s Exclusive Representatives:
Adam Gillespie, CCIMPrincipalD 610.276.3153C [email protected]
James Pasquarella, CCIMSenior Vice PresidentD 610.557.0501C [email protected]
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