Philadelphia – Rittenhouse Realty Advisors (RRA) has arranged the sale of the Metropolitan at Overbrook, a 128-unit, 222-bed apartment community located in Philadelphia’s Overbrook Farms neighborhood.
The property was master leased by St. Joseph’s University at the time of sale and had been under a master lease since the late 1990’s.
“Given the master lease structure we were able to attract both national student housing players as well as regional private capital buyers looking to raise rents if the lease expires,” said Ken Wellar, managing partner of RRA.
RRA, which represented the seller, Metropolitan Management Group, said the buyer is very active in New York and Northern New Jersey, however this is the first deal that they have purchased in the Philadelphia MSA. “Through our unique marketing process, we are able to not only identify new potential buyers to our marketplace, but ensure that they can close for our clients,” said Mark Duszak also of RRA. On trailing 12-month numbers, the property traded at slightly more than a 6 percent cap rate. “This was a win for all parties involved,” said Corey Lonberger, a managing partner at RRA. “The seller was able to maximize value given low interest rates, and the buyer gets a great property at a stable and growing university.”
St. Joseph’s University is a private school with more than 8,000 students enrolled. It is one of the “Big 5” universities in Philadelphia, with a growing student enrollment and strong academic history. The Metropolitan at Overbrook was built in the 1920’s and renovated in the early 2000’s.