RRA Sells 128-Unit, 222 Bed Apartment Complex at St. Joseph’s University for $10,700,000
PHILADELPHIA, PA, November 6, 2014 – Rittenhouse Realty Advisors is pleased to announce the sale of the Metropolitan at Overbrook, a 128 unit, 222 bed apartment community located in Philadelphia’s prestigious Overbrook Farms neighborhood. The property was master leased by St. Joseph’s University at the time of sale and had been under a master lease since the late 1990’s. “Given the master lease structure we were able to attract both national student housing players as well as regional private capital buyers looking to raise rents if the lease expires,” stated Ken Wellar, Managing Partner of RRA.
The buyer is very active in New York and Northern New Jersey, however this is the first deal that they have purchased in the Philadelphia MSA. “Through our unique marketing process we are able to not only identify new potential buyers to our marketplace, but ensure that they can close for our clients,” stated Mark Duszak also of RRA. On trailing 12 month numbers the property traded at just north of a 6% cap rate. “This was a win for all parties involved. The seller was able to maximize value given low interest rates and the buyer gets a great property at a stable and growing university,” observed Corey Lonberger, a Managing Partner at RRA.
St. Joseph’s is a private school with just over 8,000 students enrolled. It is one of the “Big 5” universities in Philadelphia, with a growing student enrollment and strong academic history. Built in the 1920’s and renovated in the early 2000’s, the Metropolitan at Overbrook is a fixture in one of Philadelphia’s premier neighborhoods.