GREA is pleased to announce the sale of a mixed-use portfolio of properties in the Washington Square West and Rittenhouse Square neighborhoods of Philadelphia. The portfolio included 902 Spruce Street, 716 South 2nd Street, 715 South Street 750-52 Martin Street, and 2027 Pine Street, all prime downtown properties within walking distance to buses, subways, and regional rail as well as within close proximity to major highways. The neighborhoods are known for their cafes, world-class restaurants and shops. Washington Square West is also the home of Thomas Jefferson University Hospital and Pennsylvania Hospital, both major employers in the City of Philadelphia.
The portfolio includes a unit mix of one, two, and three bedroom apartments as well as commercial units. It was marketed as a value-add opportunity, emphasizing the ability to increase rents with upgrades to unit finishes and common areas.
Rising interest rates created a challenge in closing this transaction. “We were able to get a deal done without retrades in the current debt environment,” said Ken Wellar, founding partner at GREA.
“Our team was able to remain firm on pricing in this challenging market,” Alan Krawitz added. “The scattered nature of the assets added to the complexity of the transaction, however, the quality of the locations proved to be the deciding factor for the capital markets.”