April 15, 2019 – Holliday Fenoglio Fowler, L.P. (HFF) announces it has closed the sale and secured financing for The Commonwealth, a 98-unit, high-rise apartment building in Philadelphia, Pennsylvania.
HFF marketed the properties exclusively on behalf of the seller, global real estate investment manager Invesco Real Estate, and procured the buyer, a joint venture partnership between The Carlyle Group and Alterra Property Group. In addition, HFF worked on behalf of the new owner to arrange acquisition financing.
The Commonwealth was originally constructed in 1906 and underwent a full restoration in 2012 that was completed by Alterra Property Group. Situated at 1201 Chestnut Street, the property’s Midtown Village location has earned it a Walk Score® of 99 and offers residents direct access to all of Center City, Philadelphia’s employment, lifestyle and transportation amenities. The 15-story building consists of 98 residential units averaging 711 square feet and 8,247 square feet of ground-floor retail. Units feature stainless steel appliances, granite countertops, European maple cabinetry, wood plank flooring and full-size washers and dryers. The residential component is 99 percent occupied and the retail component is fully leased to 7-Eleven and Mitchell & Ness Nostalgia Co., which is the American sports clothing company’s only brick and mortar location.
The HFF investment advisory team representing the seller was led by senior managing director Mark Thomson, senior director Carl Fiebig and director Francis Coyne.
HFF’s debt placement team representing the new owner was led by managing director Ryan Ade.
“We have seen a significant uptick in interest for core-plus properties in the Philadelphia region,” Thomson said. “This was a great opportunity for investors to buy a core-plus building at an attractive basis with upside in one of the best locations in Center City, Philadelphia. With a lack of velocity of core-plus deals of this size in the area, the property drew significant interest from local, regional and national investors. We conducted 31 tours of the property, which resulted in offers from 18 different companies.”