42 Residential Units

Turn Key Opportunity with Significant Rental Upside ​ LOCATED IN THE HIGHLY DESIRABLE UNIVERSITY CITY SUBMARKET

The

Opportunity

Berkadia Real Estate Advisors​ is pleased to present the opportunity to acquire U City Flats​ (“the Property”) a luxury new construction apartment community located in the thriving University City submarket of Philadelphia.​ The Property is comprised of 42 luxury apartment units across a mix of large two-bedroom (79%) and three-bedroom (21%) floor plans,​ catering to the submarket’s diverse resident base of graduate students, medical residents, and young professionals employed within the “Eds and Meds” sectors. Furthermore, U City Flats offers its residents a host of best-in-class neighborhood amenities, nightlife, 285 restaurants and bars and proximity to world-class academic institutions.

In an effort to stabilize the property since the Covid-19 pandemic, ownership leased U City Flats at rents well below what is currently being achieved at nearby competitive new construction buildings. Current rent levels at the Property trail the competitive set by $400+ per month.​ As a result, U City Flats offers a new ownership the rare opportunity to acquire a newly constructed, luxury apartment property in Philadelphia’s most thriving submarket, with the ability to capture substantial rental upside upon turnover without the need for renovations.

Investment

Highlights

  • DYNAMIC UNIVERSITY CITY LOCATION: ​ Located in one of the nation’s most dynamic and rapidly growing Eds and Meds sectors, providing immediate access to the University of Penn, Drexel University, the Hospital of the University of Pennsylvania, Children’s Hospital of Philadelphia, and hundreds of restaurants, bars and retailers.
  • STRONG MARKET FUNDAMENTALS:​ The submarket’s current average occupancy rate exceeds 95% and the average monthly rent is $1,759 / month.
  • SIGNIFICANT RENTAL UPSIDE: Current in-place rents trail the competitive set by 15%-20% on average or $175-$450+ per month, allowing a new owner to immediately capture significant rental upside without the need for renovation.
  • NEW CONSTRUCTION PRODUCT AND FAVORABLE UNIT MIX:​ Built in 2017, U City Flats’ unit mix features 79% two bedrooms and 21% three bedroom units. The average unit size is 1,033 SF and is 13% larger than the average of the competitive set.
  • EXCELLENT WALKABILITY AND ACCESS TO TRANSPORTATION: Located within a 2-minute walk to SEPTA’s 46th Street station on the Market-Frankford Line: affording residents immediate access to Center City, 30th Street Station and a connection to the Mid-Atlantic region via SEPTA Regional Rail and AMTRAK.

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Investment ADVISORS

& Financing

Philadelphia Office
Investment Advisors
Mortgage Bankers

4612-20 Sansom Street, Philadelphia, PA 19139

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