"Yes, there is a lot of value-add product available on the market," Matthew Pauls, an associate in Marcus & Millichap's Philadelphia office who procured the buyer, tells GlobeSt.com. "But they are all expensive value add. Running the numbers, the buyer decided that this deal made a lot of sense."

For instance, he says, multifamily deals are typically getting done in the 6% cap to mid 6% cap range. "This was one in the 8% range," Pauls says. EMD Investment Group sold the 41-unit Jendora Apartments, located at 7030 Rising Sun Ave., for $2.2 million, or $52,000 per unit.

Fred Paisley, senior associate in the same office, represented the seller who "is in the process of liquidating his Philadelphia area holdings to concentrate on investments in South Florida," Paisley says.

One reason why the building traded at such a high cap rate is because it requires extensive renovation, Pauls says. "The buyer is willing to take on a lot of work and some risk to develop its upside." The buyer plans to spend $200,000 to $300,000 in renovations, he says. Another reason the buyer gravitated to this property is that it is in its own backyard, Pauls says. "This is not the type of property that can be hands-off. It needs a lot of maintenance and upkeep." Once the rehab is complete the buyer plans to raise rents and lease out the seven or so vacant units.