Philadelphia, PA
Property Type: MultifamilySize: 59 Units
Price: $6,000,000
CAP: 7.87% (Pro Forma)
Highlights:
- 59 Units in the Highly Desirable Northeast Section of Philadelphia
- Value-Add Opportunity: Twenty-Five Vacant Units Allows an Investor to Immediately Implement a Renovation Plan to Achieve Higher Rents
- In-Place Rents > 25% Below Market
- Strong Unit Mix: Primarily 1 & 2 Bedrooms
- Significant Recent Capital Improvements Completed, Including New High-Efficiency Boilers, Security Camera System, and Complete Repaving/Restriping of Parking Lot
- On-Site Leasing Office/Workshop That Can Be Converted to an Apartment
- Delivered Free and Clear: Attractive Bridge Debt Available
Description:
Marcus & Millichap is pleased to present for sale the Tyson Arms Apartments, located in the Lawndale neighborhood of Northeast Philadelphia. Tyson Arms represents a significant value-add opportunity in a strong Northeast Philadelphia submarket. Due to extenuating circumstances from a staffing perspective, the property is currently experiencing elevated vacancy levels. This allows an investor to come in and immediately embark on a unit renovation plan to increase rents to market levels. While the property is experiencing vacancy, the Owner has made significant capital expenditures on building systems. In the past two years, the Owner has spent nearly $240,000 in capital expenditures on a state-of-the-art heating system, new parking lot, and security systems. It should be noted that this is a long-term owner that has maintained the property well over their hold period. Until the staffing issues on-site, the building maintained high occupancy consistently.
Located along Tyson Avenue, Tyson Arms is comprised of (44) one-bedroom units, (8) two-bedroom units, (6) studio apartments. The property also has an on-site leasing office/workshop that can be converted to a 59th unit, after filing the appropriate paperwork with the City of Philadelphia. The community amenities include laundry facilities and on-site parking. The building has six different unit types with select units featuring private entrances. The owner has renovated a sampling of apartments with new LVT flooring and appliances.
Lawndale is a vibrant neighborhood located in the northeastern part of Philadelphia, Pennsylvania. It is bordered by Roosevelt Boulevard to the west, the Tacony Creek to the north, and features a mix of residential and commercial areas that make it a unique part of the city. Home to a mix of long-time residents and newcomers, Lawndale is a dynamic neighborhood that balances suburban charm with urban convenience, making it an appealing choice for those looking to live in Philadelphia. As shown in the Rent Comparable section, this neighborhood features strong apartment fundamentals and healthy tenant demand.
Tyson Arms is an asset primed for repositioning with a new parking lot, heating system, and the ability to immediately begin turning units and achieving market rents. There are various attractive bridge financing opportunities available for a purchaser. See listing agent for details.
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