Wednesday, November 20, 2013

Fully approved and shovel ready, Kensington's Soko Lofts on the market

Just a short time after receiving final approval to construct Soko Lofts, Canus Corp. is looking to sell what is now a shovel-ready project.

Located at 1300-1354 N. Second St. in the South Kensington neighborhood of Philadelphia, the 2.8-acre site has been fully approved for a three-building, 320-unit apartment complex.

While the parcel was approved for 320 units, the developer had planned to build a 278-unit complex with 125 parking spaces and 1,600 square feet of retail space.

The offering includes not only the fully-approved site, but all design drawings, architectural work and site plans. Armed with that, a buyer could break ground within weeks of buying the property.

The property could sell for roughly $10 million, or a little more than $30,000 a unit. Newmark Grubb Knight Frank is marketing it.

It’s difficult to discern what kind of market there is for a shovel-ready project in South Kensington.

While it’s early in the marketing process, Mike Margolis of NGKF said he has received interest from local, regional and national buyers. With the Center City apartment market at a 3 percent vacancy, there are many developers who want to get into the market, Margolis said. A fully-approve site means a developer doesn’t have to go through a lengthy planning and zoning process. It took Canus nine months to wend through the approval process, which were finalized in October.

Money is also still chasing apartment projects.

“There is more debt and equity available for multi-family developments than any other property type,” Margolis said. “Lastly, South Kensington has evolved into a new, hip neighborhood with quick access to Center City and major roadways.”

That part of Philadelphia used to be the center of Philadelphia’s manufacturing base. During the last decade, Northern Liberties and neighborhoods surrounding it, such as South Kensington, have increasingly become more vibrant with new restaurants and residents.


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