Thursday, February 12, 2015

Riverwalk apartment complex in Conshohocken sells at a loss



Riverwalk at Millennium, a four-building, 375-unit complex at 309 Washington St. in Conshohocken, Pa., has been bought by a partnership involving a local real estate company.

Scully Co. of Jenkintown, Pa., teamed up with Long Wharf Real Estate Partners, a New York investment firm, to buy the property. They acquired Riverwalk reportedly for more than $80 million but on the lower end of that figure, according to some estimates.

The seller, an affiliate of J.P. Morgan, took a haircut. The financial firm bought the apartment property in 2005 for $87.5 million, which was a big number at the time.


Riverwalk was apparently a tougher sell than anticipated. Put up for sale last summer, there are about 1,500 apartment units under construction not far from the complex giving it ample and newer competition. It also sits in a floodplane.

Riverwalk made headlines in 2008 when a fire erupted at the complex. The blaze started at a building under construction across from Riverwalk where workers had been using acetylene torches, which ended up igniting some wood and sparking the blaze.

The fire jumped from that building to Riverwalk, destroying 180 apartments. Two buildings affected by the fire at the Riverwalk complex were rebuilt in 2010. The other two structures that make up the community were constructed in 2005 and not harmed by the fire. The property sits on 7.89 acres.

Mark Thomson, Zac Pierce, Jose Cruz and Kevin O'Hearn of HFF lined up the joint venture partnership between the buyers and arranged financing for the acquisition.

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