PHILADELPHIA-Locally based Yaron Properties has sold the three-story, 21,000-sf property at 250 S. Fifth St., which is occupied by the Philadelphia Sports Club, for nearly $4.7 million. They buyer is Washington, DC-based Douglas Development Corp.

The site, shadowed by the Independence Place Towers I and II condominiums, is one of the most sought after parcels between Walnut and Spruce streets in Society Hill. Brad Nathanson, a director in Marcus & Millichap’s national retail group, and Andrew Janick of its multi housing group, who are located in the Philadelphia office, represented both the buyer and the seller.

“The property was attractive to investors given the below market rent and the fact that the parcel will likely be put to better use in the future,” Nathanson says. He tells GlobeSt.com that market rents are now in the low to mid-$20s per sf, which is 70% above the current tenant’s rate. “The development potential,” he adds, “lies with the R-13 zoning, which allows for an additional 38,000 sf to be built on the site.

“We attracted close to 10 offers, with a majority coming from out of town buyers in New York, Connecticut and New Jersey,” Nathanson says. Douglas “realized the development potential of the lot in the future and understood the intrinsic value of the real estate.”

Norman Jemal, VP and secretary of Douglas, tells GlobeSt.com, “we love the area. We have no immediate plans for the site. The sports club will continue to occupy it for another five years, and we’ll wait to see where we take it from there.”

Nathanson adds, “there is a tremendous amount of interest among savvy buyers right now looking for underutilized assets sitting on great real estate in major metro markets.” As evidence, he says this property traded at a 4.88% cap rate, “one of the lowest in Philadelphia in recent years.”

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?


NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

Dig Deeper

GlobeSt Net Lease Spring 2024Event

This conference brings together the industry's most influential & knowledgeable real estate executives from the net lease sector.

Get More Information
 

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2024 ALM Global, LLC. All Rights Reserved.