(Read more on the multifamily market.)
PHILADELPHIA-A local investment group, identified as Johnson Hampshire LP, has acquired a two-property, 131-unit multifamily portfolio for $6.6 million, which translates to about $50,382 a unit. One complex was built in 1950, the other in 1961.
Both are in growing neighborhoods northwest of Center City, and the portfolio is better than 95% occupied, according to Ken Uranowitz, managing director of Livingston, NJ-based Gebroe-Hammer Associates. Eli Rosen, a Gebroe-Hammer assistant VP, represented the seller, Johnson Cordell LP, and procured the buyer.
Hampshire House, a two-building, garden-style complex at 5008 McKean Ave. in East Falls, was built in 1961. It contains 55 one- and two-bedroom units. Uranowitz says the average rent rate for a one-bedroom is $680 a month, and the average for a two-bedroom unit is $775 a month.
Johnson Court, a four-building complex at 1300 E. Johnson St. in the West Mount Airy neighborhood, was built in 1950. It contains 76 units at rent rates comparable to Hampshire House. West Mount Airy is one of Philadelphia's most diverse neighborhoods.
“Philadelphia's northwest sector is one of the city's key burgeoning markets,” says Rosen, citing the area's diversity and access to shopping. “The two properties give the buyer a major foothold in the area,” he adds.
“Many investors have targeted the city for growth and are very keen on establishing an asset base here, especially in the northwestern region,” Uranowitz tells GlobeSt.com. “Multifamily property continues to appreciate; rents are rising, and vacancy rates are among the lowest in the country.” Citing data from the National Association of Realtors, he says, “Philadelphia is one of only six areas in the nation with apartment vacancy rates of 2.7% or less.”
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