Castle Apartments

431 Valley Road; Elkins Park, PA 19027

Property Details

Investment Highlights

• Value-Add Opportunity: Ability to Renovate and Increase Rents
• Excellent Unit Mix: 57% One-Bedroom Units and 43% Two-Bedroom Units
• Award Winning School District: Cheltenham School District
• Only a Few Blocks from SEPTA Regional Rail: Melrose Park Station

Investment Overview
On behalf of ownership, Rittenhouse Realty Advisors extends to qualified investors the opportunity to acquire the fee simple interest in Castle Apartments, a 7-unit rental property located in Elkins Park, Cheltenham Township, Pennsylvania.  Elkins Park is strategically located on the northwest border of Philadelphia in the heart of the Northern Greater Philadelphia region.  It is only 10 miles from Center City Philadelphia and is well known for its school system with the only middle school in Montgomery County to hold the Don Eichom “Schools to Watch” title, and is a past winner of the 2009-10 National Middle School Grand Prize for “Teams that Make A Difference”.  Cheltenham High School was also recognized by Philadelphia Magazine (October 2012) for the Most AP Courses (29 High School AP Courses Offered) in Montgomery County.

Castle Apartments was built in 1912 and has been owned by the same family since the late 1970’s with excellent historical occupancy. It consists of two buildings: the main building with six units (4 one-bedroom units and 2 two-bedroom units); and the rear cottage with one bi-level unit (two-bedroom/1.5 bath). Heat and hot water are included in the rent (main building only) and electric and cooking gas are separately metered and paid by the tenant. The basement has coin-operated laundry facilities (owned by owner) in the main building and there is off-street parking in the rear.

The property offers an outstanding unit mix with 57% one-bedroom units and 43% two-bedroom units. The units have early “1900’s charm” with hardwood floors, unique wood casements, and architectural character. Castle Apartments is situated along Valley Road and is located only a few blocks to SEPTA Regional Rail (Melrose Park Station) that connects to three major regional lines (Airport Line, Warminster Line, and the Lansdale/Doylestown Line).

This is an excellent value-add opportunity to take a unique, “castle-like” apartment community to an upgraded status. One-bedroom average-in-place rents are approximately $830 per month in a sub-market with one-bedroom rents ranging from $900 to $1,000. Two-bedroom average in-place rents are approximately $1,045 per month in a sub-market with two-bedroom rents ranging from $1,000 to $1,500. With light upgrades to the units and landscaping, a new owner can increase rents approximately $75 to $100 per month and still be the cheapest in the market. Thus, this offers an excellent value-add strategy.

Castle Apartments is well served by its proximity to the employment centers, shopping and abundant amenities of Center City Philadelphia and the suburbs of Philadelphia. Elkins Park is only minutes to Abington Township, one of the most prominent and wealthiest communities in Montgomery County. The property offers a new owner an excellent value-add opportunity to acquire seven units in Suburban Philadelphia.

Offering Memorandum

Brokers

Location

View Larger Map