Lennox apartments, a three-building, 157-unit complex in
the West Mt. Airy neighborhood of Philadelphia, has traded for $8.75 million.
The property at 232-242 W. Walnut Lane was sold to
Premier Properties of Northern New Jersey while Wexford Management was the
seller.
Wexford had invested $1.5 million in totally renovating
two of Lennox's three buildings and upgraded the kitchens, bathrooms, plumbing
and electrical systems in the units. The complex was originally constructed in
1930. Even though the property had undergone these extensive upgrades there was
a challenge when it was listed. Thirty-five of the apartments were
uninhabitable.
"This was a very difficult deal to put together,
given that a considerable number of units were down, which made the financing a
challenge," said Mark Duszak, an investment broker with Rittenhouse Realty
Advisors, in a statement. Duszak sold the complex along with colleagues Ken
Wellar and Corey Lonberger.
Prospective buyers, both regional and local, are eager to
buy such value-add opportunities, these brokers say, and Rittenhouse Realty
recently closed on a similar multifamily deal in which a property sold for
$120,000 a unit.
Premier plans to pick up where Wexford stopped and
complete renovating the third building as well as continue to look for other
multifamily investments in Philadelphia.
Source: Philadelphia
Business Journal
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