Carlyle/Alterra JV Acquires Commonwealth MF in Philadelphia
The property offered "a great opportunity for investors to buy a core-plus building at an attractive basis with upside in one of the best locations in Center City Philadelphia," says HFF's Mark Thomson.
PHILADELPHIA, PA—A joint venture partnership of The Carlyle Group and Alterra Property Group has acquired The Commonwealth, a 98-unit, high-rise apartment building at 1201 Chestnut Street, Philadelphia, PA. The dollar amount of the transaction was not disclosed.
Holliday Fenoglio Fowler marketed the properties exclusively on behalf of the seller, global real estate investment manager Invesco Real Estate, and procured the buyer. HFF worked on behalf of the new owner to arrange acquisition financing. The HFF investment advisory team representing the seller was led by senior managing director Mark Thomson, senior director Carl Fiebig and director Francis Coyne.
HFF’s debt placement team representing the new owner was led by managing director Ryan Ade.
“We have seen a significant uptick in interest for core-plus properties in the Philadelphia region,” Thomson says. “This was a great opportunity for investors to buy a core-plus building at an attractive basis with upside in one of the best locations in Center City Philadelphia. With a lack of velocity of core-plus deals of this size in the area, the property drew significant interest from local, regional and national investors. We conducted 31 tours of the property, which resulted in offers from 18 different companies.”
The Commonwealth was originally constructed in 1906 and underwent a full restoration in 2012 completed by Alterra Property Group. The property’s Midtown Village location has earned it a Walk Score® of 99.
The 15-story building consists of 98 residential units averaging 711 square feet and 8,247 square feet of ground-floor retail. Units feature stainless steel appliances, granite countertops, European maple cabinetry, wood plank flooring and full-size washers and dryers. The residential component is 99% occupied and the retail component is fully leased to 7-Eleven and Mitchell & Ness Nostalgia Co. for the American sports clothing company’s only brick and mortar location.