PHILADELPHIA, PA – Dalzell Capital Partners, a real estate investment and management firm, announced that it bought a four-property multifamily portfolio located in Center City, Philadelphia for $18.7 million. The Portfolio was bought from Philadelphia-based commercial real estate developer Alterra Property Group.
“Dalzell Capital’s continued investment in Center City demonstrates our positive long-term outlook on Philadelphia, which is enjoying an accelerating economic expansion,” said Christian Dalzell, Dalzell Capital’s Managing Partner. “The rare opportunity to expand our footprint across Center City through the acquisition of four outstanding properties at an attractive valuation is something we are extremely excited about.”
The luxury portfolio consists of four newly built or recently gut-renovated properties aggregating 65 units that offer Dalzell Capital the opportunity to make incremental value through operational and capital improvements. With an average Walk Score of 99, the Portfolio will benefit from its proximity to nearly 400,000 jobs in Center City and University City, Philadelphia’s extensive local, regional and national transportation network, and significant complementary commercial property development activity. The Portfolio is comprised of the following assets:
The Bradford – Located at 507 South 8th Street between Lombard and South Streets, The Bradford was delivered in 2017 and quickly leased up to full occupancy. The 26-unit property offers high-end materials, premium appliances and fixtures including Nest in all units, covered parking, a green roof, an enclosed dog run, and an outdoor tenant lounge with community BBQ.
Queen Village Lofts – Located at 427 Monroe Street, approximately four years ago, the property was gut renovated and converted from a school into a 16-unit, high-end contemporary multifamily property that features gorgeous millwork, modern kitchens and bathrooms, secure access, washer and dryers in each unit, secure parking, and a rooftop deck with 360 degree views of Philadelphia. Queen Village Lofts sits one street south of Bainbridge Green and directly across the street from the Elizabeth Elementary School, which is considered one of the best public elementary schools in Philadelphia.
1311 Spruce – Located at 1311 Spruce Street, the property was originally built as a law office. In 2013, 1311 Spruce was converted and expanded into the gorgeous urban multifamily property that it is today. The property’s 16 one- and two-bedroom units feature modern kitchens and appliances, granite counters, subway tile backsplashes, new bathrooms, washer and dryer in each unit, and hardwood floors throughout the property.
1310 Spruce – Located at 1310 Spruce Street (directly across the street from 1311 Spruce), the property was redeveloped in 2014 and includes seven units featuring modern kitchens, appliances and bathrooms. Located on Spruce between Broad and 13th Streets, both 1311 Spruce and 1310 Spruce are fantastic destinations for the urban living experience, with restaurants, theaters, galleries and boutiques all within walking distance.
The portfolio transaction advances Dalzell Capital’s strategy of acquiring assets in fundamentally strong and densely populated urban markets that have the potential to deliver stable cash flows and outsized value-add returns. It also gives Dalzell Capital increased scale in Center City, the largest job center in the Philadelphia MSA due to its large concentration of employers in the education, health and life science industries. With 71 percent of Core Center City residents having a bachelor’s degree or higher, national and local businesses are capitalizing on the area’s educated, skilled workforce.
On June 27th, 2018, Dalzell Capital bought Waverly Court, a 62-unit mixed-use property located in Center City that features 61 loft-style apartments and a 2,800 square feet commercial unit leased to Amis Trattoria, for $21 million. As a result of the acquisition of the Portfolio, over the past 12 months Dalzell Capital has assembled a portfolio of seven high-quality mixed-use and multifamily properties totaling 192 units and 8,500 square feet of commercial space. All properties are tightly clustered in Center City, and are poised to benefit from the area’s continued economic expansion. Having deployed approximately $65 million in Center City since August 10, 2017, Dalzell Capital expects to continue to pursue additional value-add and opportunistic transactions in targeted submarkets across Center City and University City.
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