Tuesday, November 25, 2014

Mount Airy apartments sell for $8.75M



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.

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