|Number of units||335|
|Call for Offers||2022-05-12|
Jones Lang LaSalle Americas, Inc. (“JLL”) is pleased to present the opportunity to acquire One Franklin Town (the “Property”), a 335-unit, generational high-rise apartment community located in the coveted Philadelphia neighborhood of Logan Square. Completed in 1987, One Franklin Town features 335 apartment homes ranging from studio to three-bedroom floorplans, averaging 966 square feet. To date, ownership has renovated 54 units, or 16% of the unit mix to a luxury scope and has achieved rental premiums of more than $250, providing future ownership with the opportunity to streamline a renovation program in the remaining 281 classic or previously renovated units and capitalize on proven rental increases. Furthermore, as currently positioned, the Property’s classic and renovated rents trail its competitive set by more than 10%, allowing new ownership to immediately increase rents and recapture sizable loss-to-lease upon acquisition. The average resident income at the Property exceeds $97,000, further supporting the rental upside thesis.
PROVEN VALUE-ADD OPPORTUNITY
- One Franklin Town was constructed in 1987 and has been professionally maintained since. Current ownership has successfully renovated 16% of the Property, achieving average rental premiums of more than $250 above classic and previous renovated unit finishes. Today, 62% of the units have received an aging renovation and 22% of the units remain classic, featuring dated finishes that no longer compete with the surrounding competitive set. New ownership is provided an exceptional opportunity to renovate the remaining classic and previously renovated units (84%) to a modern luxury scope that will command quantifiable rental premiums.
STABLE CASH FLOW WITH RENTAL UPSIDE
- As a result of the pandemic, rents across Center City were not maximized over the trailing 24-month period, leaving investors the ability to capitalize on a sizable loss-to-lease upon acquisition while developing a comprehensive renovation program. Per CoStar, the current average market rent for 1950+ vintage properties (150+ units) in the Center City West submarket is $2,345, which is more than 15% above One Franklin Town’s average in-place rent of $2,018 allowing an investor to immediately increase rents upon turnover and renewal.
IRREFUTABLE DEMAND DRIVERS
- Logan Square’s luxury apartment market is supported by Center City's healthy labor pool and outstanding demographics. In addition to the supportive submarket-level employment fundamentals, One Franklin Town’s renter demographic consists largely of educated, high-earning professionals that are insensitive to price increases, further supporting the rental upside opportunity.
STEPS AWAY FROM RENOWNED PHILADELPHIA ATTRACTIONS & DEMAND DRIVERS
- One Franklin Town is conveniently located in Logan Square, a neighborhood that combines top city attractions, corporate and municipal office buildings and luxury high-rises along pedestrian-friendly, tree-lined streets. Bordered by Broad Street to the east, the Schuylkill River on the west, Market Street on the south and Spring Garden Street on the north, the neighborhood benefits from its centralized location, which is aided by its main artery – the Benjamin Franklin Parkway. A surplus of museums and other iconic Philadelphia landmarks border the parkway and add ample outdoor green spaces for relaxation and fun. The parkway also provides direct access to Center City Philadelphia in minutes.