Three Apartment Properties Change Hands

Pearl Properties acquired Sedgley Commons and Pineview from locally based AMC Delancey Group for nearly $3.9 million. AMC Delancey acquired the properties 10 years ago, and Kevin P. Balin, president and CEO, says, "Our long-term hold strategy ensured that we were able to purchase them at competitive numbers in a down market cycle and sell in a very strong sellers market for residential real estate in Philadelphia." Without revealing what his company paid for the properties or the cost of improvements over the past decade, Balin says his company's investors' returns for the holding period "were well above market expectations while still providing a solid economic investment for the buyer."

The properties have a total of 42 apartment units and four commercial spaces. The commercial space at Pineview includes Dirty Frank's Bar, a Center City institution with a distinctive mural depicting such famous "Franks" as Sinatra, Lloyd Wright and St. Francis of Assisi. It is reputed to be the oldest bar in continuous operation in the city. Pearl paid just under $1.5 million for the building in which all 22 units are occupied.

Sedgley Commons, a 24-unit garden-style complex, is 95% occupied. Pearl paid $2.4 million, or $110,000 a unit. "Smaller properties like this are no longer part of [AMC Delancey's] core strategic portfolio," Balin says, adding that the company continues to invest with strategic partners in larger properties.

Meanwhile, the local office of Marcus & Millichap sold the 16-unit Hillside Apartments on behalf of Mr. and Mrs. George Baboo and Mark Guzhavin for nearly $1.3 million, or about $80,562.50 a unit. The buyer is unidentified.