PHILADELPHIA – Marcus & Millichap Real EstateServices, the nation’s largest real estate investment services firm, has arranged the sale of Beechwood Gardens, a 160-unit apartment property in northeast Philadelphia. The asset sold for $13,000,000, which represents $81,250 per unit.
Clarke Talone, Ridge MacLaren, and Andrew Townsend,specialists in Marcus & Millichap’s Philadelphia office, facilitated the transaction between the seller, a New York-based limited liability company, and the buyer, a local limited liability company.
“We sold this asset four years ago during a time when not much was trading,” says Talone. “The sellers did a good job managing the property and have consistently maintained occupancy in the mid-to-high 90 percent range.”
“Beechwood Gardens represented an excellent opportunity for the buyer to break into the strong northeast Philadelphia apartment market with immediate scale,” adds Talone. “We worked with the buyer for several years before we identified the right asset to pursue and ultimately execute our strategy.”
The buyer assumed an agency loan with a rate higher than current market rates.
“The assumption process took some time, but the buyer and seller were very cooperative with one another,” notes MacLaren. “This transaction is indicative of the fact that there is an abundance of capital pursuing quality multifamily assets right now. In fact, the supply of capital far outweighs the available inventory of on-market properties,” MacLaren adds. “Therefore, well-priced real estate in solid in-fill locations will continue to generate significant buyer interest.”
Beechwood Gardens is located at 9805 Haldeman Ave. in Philadelphia, with easy access to U.S. Route 1 and Interstate 95. Southeastern Pennsylvania Transportation Authority regional rail lines provide convenient transportation to Center City, Philadelphia.
Built in 1967 on 5.7 acres, Beechwood Gardens contains 80 one-bedroom units and 80 two-bedroom apartments. Over two-thirds of the units have been renovated.