The Blenheim (University City)
4311 Spruce Street; Philadelphia, PA 19104
- Price$ 7,800,000
- Property TypeMulti Unit Housing
- NeighborhoodSpruce Hill/Univ. City
- Number of Units55
- Lot Size0.22 acres
- Price/Unit$ 141,818
- Year Built1930
- Outstanding Value-Add Opportunity: Sub-Market Occupancy Over 98%
- Exceptional Rental Market: New Construction Apartments Rent for Double the Current Rents
- Outstanding Rental Pool: 54% of Sub-Market Residents Over 25 have a Bachelor’s or Advanced Degree
- Most Desirable University City Sub-Market: Spruce Hill Neighborhood
- World Class Universities & Medical Facilities: University of Pennsylvania, Drexel University, University of the Sciences, Penn Medicine and Children’s Hospital of Philadelphia
On behalf of Ownership, Rittenhouse Realty Advisors extends to qualified investors the opportunity to acquire the fee simple interest in The Blenheim Apartments, a value-add opportunity located in the University City neighborhood of Philadelphia. This highly-sought-after area is home to some of the best educational facilities and hospitals in the world – the University of Pennsylvania, Drexel University, The University of the Sciences Philadelphia, Hospital of the University of Pennsylvania, and Children’s Hospital of Philadelphia.
Built in 1930, The Blenheim contains 55 apartments: 85% studio units and 15% one-bedroom units. The units have high ceilings and large common area hallways. Tenants pay heat, water, sewer, and cooking gas through a monthly utility fee and pay electric directly to the provider. 100% of the units have been renovated with refinished original hardwood flooring, new kitchen and bathroom flooring, fresh paint, new light fixtures, A/C units, window treatments, electrical outlets, closet hardware, bathroom vanities, faucets, and kitchen countertops.
71% of units have been renovated with a “Standard” renovation that includes new “builder grade” kitchen cabinets and a basic appliance package, 4% have been renovated with a “Lux” renovation that includes new “builder grade” kitchen cabinets and a stainless-steel appliance package, and 25% have been renovated with a “Super Lux” renovation that includes high-end kitchen cabinets and a stainless-steel appliance package.
Current ownership purchased the building as part of a 2015 portfolio sale. This was the last building of the portfolio to be renovated. The apartment units were vacated for renovation that was completed during the Fall of 2016. This renovation timeline missed the prime leasing season for University City. Despite that, the property leased up quickly with occupancy north of 91% (as of March 27, 2017). The Blenheim has historically operated with north of 98% occupancy.
The property is now an excellent value-add opportunity for a new owner to capture not only students from UPenn, Drexel and USciences, but young professionals from the nearby hospitals. The rents are currently approximately $100 – $150 below market. Through rebranding and an upgrade of the common areas including the vestibule, the property has the potential to be the premier apartment community in the desirable Spruce Hill sub-market and to command the highest rents in this
The University City area has outstanding occupancy of 98% to 100%. The Spruce Hill section is unique in the sub-market with its grand historical residences, charming green space, and mix of student and professional residents. The rental pool here is very similar to the neighboring Cedar Park neighborhood to the south. Although occupancy is nearly 100% in this area, rental rates are almost 200% lower than new construction just four blocks away in the campus section of University City.
Situated on 43rd and Spruce Streets, The Blenheim occupies a unique and desirable location within the Penn Alexander School Catchment Zone (2016 National Blue Ribbon School; Grades K-8). Further, residents enjoy the benefits of being in within walking distance to universities, employers and 30th Street Station (Philadelphia transportation hub for SEPTA and Amtrak). The Blenheim is just a block from the trendy Clark Park and the shops and restaurants of Baltimore Avenue. Local favorites like Local 44, Green Line Café, Aksum, Vietnam Café and Dock Street Brewery have made this neighborhood desirable to a slightly more mature renter looking to stay in University City but not necessarily live on campus.
The Blenheim Apartments is an excellent value-add opportunity. After full lease-up, repositioning and minor upgrades, the rental rates should reach approximately $1,000 to $1,450 per month.
Tel: (215) 454-2852 EXT 1002
Cell: (610) 745-4800
License: PA RS289487 / NJ 1005492
Tel: (215) 454-2852 EXT 1003
Cell: (215) 805-5011
License: PA RS277420 / NJ 0047530
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