Bisnow Exclusive Presidential City Apartments Sells
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|Post Brothers Apartments bought the four-tower, 1,030-unit Presidential City Apartments in Philadelphia. Post prez Matthew Pestronk tells us it’s the largest market-rate apartment deal in the city this year. (It is the largest apartment complex in the city, so everything it does is going to be a record.)|
|The company is paying $51M to an undisclosed seller for the buildings themselves and is also entering into a 99-year ground lease for the underlying land at the same time, an unusual ownership structure in Philadelphia. (Though, doesn't Ben Franklin still have leasing rights on half the city?) Matt says a lot of equity went into the deal to complement a first mortgage on the buildings, and that the property has excellent long-term growth potential. It’s stabilized now at about 90% occupancy, and is also a prime candidate (eventually) for top-to-bottom, major redevelopment.|
|Post Brothers’ specialty is value-add multifamily redevelopments, so it would be right at home in modernizing the vintage 1950 complex at the confluence of US 1 and I-76. Matt adds that any eventual renovations will be “environmentally friendly to the cutting edge,” which is important not only to Post Brothers but to potential renters. The goal for all of the properties the company redevelops, he says, is to be carbon neutral.|