(Read more on the multifamily market.)
PHILADELPHIA-An investor group lead by Scott Homel and assembled by Jenkintown-based Pintzuk Brown Realty Group has acquired the 300-unit Philadelphia Regency. The rental property is located at 1220 N. Broad St. within striking distance of the rapidly expanding Temple University campus.
The sale price is undisclosed. On condition of anonymity, an area multifamily specialist tells GlobeSt.com the price tag was probably between about $70,000 a unit and $80,000 a unit, which would put the buy at between $21 million and $24 million. Eli Rosen of Livingston, NJ-based Gebroe-Hammer Assoc. represented the seller, which it identified as a closely held limited partnership. According to public records, that is Goldstein & Goldstein, which acquired the property in 1990.
Homel is an affiliate of Pintzuk Brown along with the company's partners, Christopher Datz and Anthony Sembello. The buying group also includes an unidentified institutional JV equity partner. Pintzuk Brown led due diligence, secured the financing and will operate the facility.
Datz tells GlobeSt.com the new owner will invest about $3 million in upgrades. "A key component of the business plan is repositioning the building through major upgrades, including the HVAC system, façade and common area improvements, unit renovations and an amenities package," he says. The property is currently 94% occupied and rent rates range from $535 a month to $825 a month.
Homel cites the changing nature of the North Broad Street corridor "as Temple and Center City continue to move toward convergence. This building has excellent access to transportation…(and) we hope to attract a greater tenant base of students." Sembello sees upside potential in the city's stable multifamily occupancy and growing rental rates.
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