RRA Sells 46 Student Housing Units, Totaling 111 Beds, In Philadelphia, PA For $6,400,000
PHILADELPHIA, PA, May 19, 2015 – Rittenhouse Realty Advisors is pleased to announce the sale of three student housing properties, consisting of 46 units and 111 beds, for more than $6,400,000 in total consideration. The sales consisted of three different properties, one located near St. Joseph’s University and two located in University City, providing housing for students at both UPENN and Drexel.
Two of the three properties were excellent value-add opportunities that were purchased by the same buyer, a local owner with significant holdings in the immediate area. Those properties, located at 6355 Lancaster Avenue and 4519-4525 Pine Street, had rents significantly under market. With renovations to kitchens and baths the buyer plans to increase rents 10%-15%. Vince Tagliente, who represented the seller in the 4519 Pine Street transaction, stated, “We continue to see a high demand for value-add rental properties in University City given the continued growth in the immediate area.”
The third property, a newly constructed, 28-bedroom building located at North 40th and Wiota Streets, held the advantage of being Drexel University approved off-campus student housing. “University City continues to be one of the hottest districts for investment properties in Philadelphia. We’re seeing a massive influx of buyers from New York, down to Washington D.C., all looking to enter the established student housing market,” stated David Greenhalgh, an associate at Rittenhouse Realty Advisors.
Rittenhouse Realty Advisors continues to be a leader in the student housing market in the Mid-Atlantic region. “With offices in New York, Philadelphia and Delaware we are able to identify buyers for these assets who may not have otherwise been aware of the excellent opportunities in the student housing market,” said Ken Wellar, a Managing Partner at RRA.