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|Building Area Net||
|Number of units||16|
Jones Lang LaSalle, Inc. (“JLL”) is pleased to present the opportunity to acquire 262-4 S. 21st Street (the “Property”) a 16 unit, value-add multi-housing opportunity located in the heart of the prestigious Rittenhouse neighborhood of Center City, Philadelphia. This four-story walkup offers a blend of thoughtfully arranged studio, one, and two-bedroom units averaging $1,382 per unit. Current ownership renovated 4 of the 16 units, presenting the opportunity to capitalize on the significant renovation premium across the remaining 75% of unrenovated units. Each renovated unit is equipped with best-in-class unit finishes that appeal to the discerning Center City renter, complete with stainless steel appliances, beautiful hardwood flooring, shaker style cabinetry, Quartz countertops, ample closet space, and vaulted ceilings.
This Property offers a rare opportunity to acquire a well maintained asset in the heart of Philadelphia’s most sought after and wealthiest neighborhood. These partial renovations include over $200k of capital focused deferred maintenance, kitchen and bathroom renovations, central air conditioning in some units, and exterior upgrades. The property has 4 fully renovated units (25%) achieving premiums approaching $325. Investors are presented the opportunity to finish the value-add business plan by renovating the remaining 12 units (75%) to a luxury scope and capitalize on the uncapped rental premiums from the vibrant, affluent resident demographic that is insensitive to rental increases.
262-4 S. 21st Street’s irreplaceable Rittenhouse Square location offers residents a balanced urban lifestyle with a plethora of convenient walkability to neighborhood amenities, including shopping, dining, and nightlife. 262-4 S 21st Street is situated at the “Axis of Center City West.” The asset boasts a dynamic locale and has excellent visibility in the market and acts as a hub for the city’s most popular, high-traffic neighborhoods. Center City Philadelphia’s population density now ranks 2nd in the entire country (behind Manhattan). According to REIS, “Center City is one of the most vibrant residential downtowns in the United States”. Rittenhouse Square commands the highest average rent of any neighborhood in Center City and is widely considered the top location in Philadelphia in terms of exclusivity, desirability, and residential housing sale prices.
This high barrier to entry submarket rarely presents the opportunity to acquire an asset of this quality and offers the exceptional prospect of owning in the most sought-after location in the city or to expand one’s existing Center City presence.
262-4 S. 21st Street represents an extremely rare opportunity for an investor to acquire a timeless, well maintained asset in the heart of the Rittenhouse Square neighborhood of Center City with significant upside. The Property was constructed in 1920 and has been privately owned and meticulously maintained following renovations in 2017. To date, ownership has renovated 4 units (25%), achieving premiums over $325. The remaining 12 units (75% are in high demand and well positioned to be elevated to a luxury scope that includes stainless steel appliances, granite/quartz counter-tops, goose neck faucets, modern cabinetry, upgraded bathrooms and more.
Courtyard and Common Area Modernization
In addition to renovating the original units, and enhancing the upgraded units, new ownership is afforded various opportunities to improve curb appeal and elevate the asset profile to a premier luxury offering. The communal courtyard between 262 & 264 S. 21st Street offers the opportunity to create a backyard oasis where residents can escape the city by supplying a picnic area, grilling station, or community garden. Additionally, new ownership will benefit from the modernization of the assets by enhancing and implementing the common areas and hallways, offering a rooftop space, basement storage units, package delivery systems, and bike racks that will better align the asset with the competitive set.
The asset’s ideal location places its residents within a short walk to a magnitude of national employers, award winning restaurants, and luxury retail. In addition to its extremely walkable location, the Property offers residents convenient access to all major arterial roadways of the region, including Interstates 76, 95 and 676. 262-4 S. 21st Street central location provides its residents with multiple forms of public transportation at Suburban Station, the Broad Street Line, as well as numerous bus, highway, and regional train lines providing immediate accessibility to the entire city and its surrounding suburbs. Amtrak’s 30th Street Station, the third busiest stop along the nation’s Northeast rail corridor, is also just a short walk away.
Rittenhouse Square is Philadelphia’s most sought after, upscale neighborhood in the heart of Center City, located between Walnut and Pine streets from 15th to 24th street. Rittenhouse boasts the amongst the highest per square foot rental rates in the city and is competitively occupied by luxury hotels, high-end retail, and world-renowned restaurants.