In a testament of the strength of Philadelphia’s
multifamily investment market, Icon, a 206-unit apartment building at 1616
Walnut St., has sold for $112 million – one for the record books on a per
square foot basis, according to market sources.
Though some thought the property would get as much as
$125 million, the $112 million price tag is considered huge at more than
$540,000 a unit. The building has 23,000 square feet of fully leased retail
space and 160 parking spaces.
The 25-story building was bought in 2012 by a partnership
involving Federal Capital Partners, Cross Properties and Alterra Property
Group.
Constructed as an office building in 1929 and used as
such ever since, the new owners decided that it would work better as an
apartment conversion. They set about relocating more than 100 office tenants
that occupied the property and launched a $50 million redevelopment of the
building.
Renamed Icon, it has 206 apartments, including 143
one-bedroom units. The average size of an apartment is 730 square feet.
Along with the 160 parking spaces, some of its other
amenities include: a sky deck with a grilling station, herb garden, outdoor
living area and fireplace; a private dining room with fireplace; club level
with kitchen, pool table, and large-screen televisions; and a fitness floor
with a yoga studio, a massage room and other cool attributes.
Icon opened to renters in April 2014 and quickly leased
up.
It also pushed up the price that people were willing to
pay to live in an apartment.
Average rents are at $3.50 a square foot with a
smattering coming in at $4.50 a square foot. Those are some of the highest
rates being paid in Center City. Landlords of Class A apartments last year saw
rents surge by 3.7 percent to $2,128 a month, or $2.23 a square foot.
Harrisburg, PA
The property came up for sale in October. The buyer is an
investor from New York, according to sources.
Source: Philadelphia
Business Journal
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