Southern Land Sells Trophy Apartment Building In University City
Southern Land Co. has sold the first high-rise multifamily building it ever developed as it sets out to embark on another.
The Nashville-based developer closed the sale of 3601 Market St. in University City to FPA Core Plus Fund IV, an investment vehicle of San Francisco-based FPA Multifamily, July 23. Southern Land opened 3601 Market in 2015 after developing it in partnership with Redwood Capital Investments on a 99-year ground lease from University City Science Center. ARA Newmark represented Southern Land in the transaction.
The 28-story, 363-unit building was not only Southern Land's first high-rise project and first development in Philadelphia, it was also the first residential project developed as part of the University City Science Center. The nonprofit includes the building as part of its uCity Square megaproject.
Having spent $110M developing 3601 Market, Southern Land put it on the market in May of last year asking for $160M, the Philadelphia Business Journal reported at the time. The sale price was not disclosed as of press time, but whatever it garnered, Southern Land could put a sizable chunk toward its next project in Philly. Southern Land Senior Vice President Dustin Downey will be speaking about his firm's take on the apartment market in Philly at Bisnow's Philadelphia Multifamily event next month.
On the last undeveloped parcel in Rittenhouse Square, Southern Land is set to break ground on The Laurel, a multifamily tower at 1911 Walnut St., this fall. With a mix of for-sale condos and furnished and unfurnished apartments, the Laurel is gunning to be the most expensive place to live in Philadelphia. At 48 stories, it is expected to be the tallest when it is completed.
3601 Market is no slouch in the price department either, with rents ranging from $1,800 per month for a 427 SF studio unit to $4,165 per month for a two-bedroom, 1,543 SF penthouse. With ultra-luxe amenities such as a heated saltwater pool on the building's roof, 3601 Market (also known as Arrive University City) will not fall under the category of a value-add transaction for FPA Multifamily.