Philadelphia's Franklin House Trades for the First Time in 60 Years

Franklin House in Philadelphia has traded hands for the first time since the 1960s. Brick Capital purchased the mixed-use property, which features 49 apartment units and more than 16,000 square feet of office and retail space. The property traded hands from an unnamed seller for $12.7 million.

The property’s true value lies in the location—one of the reasons that is hasn’t traded hands in almost 60 years. Located in the Washington Square neighborhood, it is within a block of SEPTA’s Jefferson Station, as well as PATCO’s 9th-10th and Locust Street Station to New Jersey and near major employment centers, including Penn Medicine and Thomas Jefferson University Hospital.

Brick Capital managing partner Corey Lonberger said in a press release that the firm was attracted to the property’s tremendous upside, however, he wasn’t specific about the firm’s business plan for the property. Prior to the sale, the previous owner completed $385,000 in capital improvements.

From a macro perspective, Philadelphia is seeing healthy investment. In March, the city’s public-private economic development corporation, PIDC executed an agreement to provide Ensemble Real Estate Investments and Mosaic Development Partners with exclusive development rights for 109 acres of land at Philadelphia’s Navy Yard. The deal facilitates a $2.5 billion development plan in the Navy Yard, which will kick off with the $400 million development of two advanced life sciences buildings, as well as significant residential and hospitality initiatives.

Also in March, a joint-venture partnership of Joss Realty Partners, SSH, Young Capital and National Real Estate Advisors LLC secured $220 million in construction financing to develop a build-to-suit, specialty care pavilion and ambulatory clinic in the city. Jefferson Health is a 425,000-square-foot 19-story clinic with a three-story underground garage, access to loading docks and parking for 320 vehicles.