Allan Domb Pays $227K a Unit for 2031 Locust St.

PHILADELPHIA-In a sign of the strength of Center City’s residential investment market, locally based Allan Domb Real Estate pays $20 million, or slightly more than $227,272 a unit, for the 88-unit rental building at 2031 Locust St. The seller is King of Prussia, PA-based Morgan Properties and GMAC Commercial Corp., based in Horsham, PA, which partnered in the purchase of this building in May 2003 for $11.5 million.

John McFadden and Robert Miller, SVPs in the local office of CB Richard Ellis, represented the seller. “The price sets a new benchmark for Philadelphia residential,” McFadden tells GlobeSt.com, adding, “the cap rate is below 5%, which is also an historical benchmark.”

The local office of Marcus & Millichap projects a $58,000 median price-per-unit for multifamily sales throughout the Philadelphia MSA this year. That median rose 24% last year and 19% the year before. The only recent sale that even approaches Domb’s ticket for 2031 Locust is a small, nine-unit property in West Chester, PA, which, according to M&M data, traded for $150,000 a unit.