Center City apartment building sells for $120M

The Granary, a newly constructed apartment complex at 20th and Callowhill streets in Center City, has sold for a reported $120 million.

Lowe Enterprises Investors of Los Angeles bought the building, which includes 229 apartments and 20,463 square feet of street-level retail space that will have a dog shop, a restaurant called Pizzaria Vetri by Marc Vetri, Whirled Peace Yogurt and other stores. It also has parking.

Pearl Properties of Philadelphia constructed the $66 million project which totals nine stories and 310,000 square feet.

The development, which is in the Logan Square neighborhood of Philadelphia, is still leasing up. About half of the units have been rented out, said Bleecker Seaman, co-CEO of Lowe Enterprises Investors. In spite of the pipeline of other apartment properties that are in the process of hitting the market, Bleecker said he sees “some upside opportunity and rent growth … So far we have been happy with our rents.”

Seaman did not disclose a sale price.

This is the first acquisition in Philadelphia for Lowe Enterprises Investors. The company established a Philadelphia office about a year ago with the intent of expanding its portfolio in Center City and the Philadelphia suburbs. It had assumed the management of some local assets such as Station Square in Ambler, Pa., and some other properties in Voorhees, N.J.

The company will focus on making additional multifamily acquisitions but would not rule out buying hotel or select office assets.

“We believe strongly in the Center City market with the continued urbanization trend, people continuing to live in the city,” Seaman said

The Granary is a new anchor for the Logan Square neighborhood, which is seeing a tremendous amount of new development including a new Mormon temple, a new mixed-use complex that will eventually house a Whole Foods market, and the potential redevelopment of the Family Court building as well as other projects that will enhance the parkway.

Lowe Enterprises Investors retained Greystar to oversee property management for the Granary. John Gaghan of Lowe Enterprises Investors’ Philadelphia office led the acquisition team. Jose Cruz of HFF represented Pearl Properties in the transaction. Jeff Heath of Berkadia Commercial Mortgage secured the debt.

 

Source: Philadelphia Business Journal