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PHILADELPHIA-A 147-unit portfolio made up largely of single-family homes in the Philadelphia area has come to market. Marcus & Millichap is handling the listing, which has been priced at $11 million, or $74,830 per unit. Donald MacLaren, a director of Marcus & Millichap’s National Multi Housing Group in Philadelphia, and Joshua Brown, an investment specialist also in the firm’s Philadelphia office, are representing the sellers, which are a group of local investors.

The majority of the houses are in the Olney, Hunting Park and Frankford sections of Northeast Philadelphia, South Philadelphia and the Overbook Park area of Southwest Philadelphia. The eclectic portfolio, which the owners have acquired over a period of 20 to 30 years, consists of 10 buildings that are duplexes; two buildings that are triplexes; 138 single-family homes ranging in size from two-bedroom units to six-bedroom units; two factories; three single-family homes that need renovations; one open lot; and one parking lot.

It is a unique portfolio, Brown admits, “but because it is producing income it is still attractive for investors,” he tells GlobeSt.com. Marcus & Millichap priced the portfolio based on a combination of the sales comps for the houses and properties and the income that is produced from the portfolio, Brown adds. There is significant upside to this investment, he says, as the rents for some of the units are as much as 44% below market-rate “and could be easily increased by making little or no renovations to the buildings.”

The portfolio is 97% leased. The tenants pay for their heat, hot water and electric expense, while the owner pays for the water and sewer expense.

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