John McFadden and Robert Miller at CB Richard Ellis represented the seller in the transaction. The financing was provided by Meridian Capital through Sovereign Bank, Liss tells GlobeSt.com. The cap rate for the deal was in the sub 6% range, he adds.
A 208-unit complex that encompasses 18 buildings, Brookshire is situated in the upscale portion of the northeast Philly submarket, Liss says. Located at 14040 Dana Ave., the property is 93% occupied. The Liss Group plans to spend an additional $750,000 to $1 million making upgrades.
This is a value-add play for Liss Property, Liss explains. "The rents are below market and the apartments are spacious town homes."
The last transaction Liss Property closed in March was also the northeast Philadelphia neighborhood. Unlike the Brookshire, though, Liss Property went after that deal for the economies of scale that it could provide. The company acquired two-asset multifamily portfolios for $13.5 million from local property management and investment firm Chancellor Properties. With its latest acquisition, Liss now owns slightly more than 1,500 units in northeast Philadelphia--and the company has more deals pending in the pipeline for the submarket, Liss says.
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