Living / Multi-housing

Spruce Street Apartments

1023-28 Spruce St Philadelphia, Pennsylvania United States 19107-6709
Asking Price Contact for pricing
Area Size
NOI Net Operating Income N/A
Cap Rate N/A

Documents

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Key facts

Year Built 1900
Building Area Gross
Land Area Gross ()
Rentable Area
Number of units 35
Occupancy 100.0 %
Call for Offers

Property description

Jones Lang LaSalle Americas, Inc. (“JLL”) is pleased to present Spruce Apartments (the “Properties”), a four-building, 35-unit apartment opportunity located in the coveted Washington Square West submarket of Philadelphia, Pennsylvania.

 

Constructed in the early 1900s and renovated in 2020 Spruce Apartments features 35 apartment homes consisting of studio, one- and two-bedroom floor plans. The Properties present the unique opportunity for an investor to capitalize on well below market rents through loss-to-lease recapture on new leases and renewals. Currently, in-place rents trail the market average by more than 10%, and the 9 most recent new leases have increased by an average of 9%. In addition, an investor can realize increased rental revenue through the installation of washers and dryers in the remaining 11 units and reposition the vacant basement spaces in the 1023 and 1026 Spruce Street buildings to include resident-driven amenity spaces or rentable studio units. Finally, ownership has invested over $1.4MM in capital expenditures toward courtyard renovations, hallway improvements, key fob systems, security enhancements, unit renovations, and more, allowing an investor to center their focus on other revenue-generating enhancements and continued rental increases.


Spruce Apartments benefits from its exceptional location in Washington Square West – Philadelphia’s wealthiest neighborhood that boasts average household incomes north of $150,000 and achieved YOY rent growth of nearly 13% as of 1Q2022. The location offers residents premier accessibility to national employers, award-winning dining, and upscale retail throughout Center City. Further, tree lined Spruce Street provides a serene living experience without sacrificing the conveniences of living in Center City. The Properties are just steps away from two of Philadelphia’s largest employers, University of Pennsylvania Health Systems and Thomas Jefferson University Hospital. In addition to Washington Square’s neighborhood amenities, the Properties are just five blocks from several acclaimed nightlife and entertainment offerings in Midtown Village, and are located proximate to various transportation options including the 8th & Market SEPTA stop, I-95, and I-676.

 

Spruce Apartments presents an investor with the opportunity to acquire a fully occupied, cash-flowing asset with proven rental upside located along 10th & Spruce Street in the affluent Washington Square West submarket of Center City, Philadelphia.

Investment highlights

Compelling Multi-Housing Fundamentals

  • Washington Square West is home to the wealthiest resident demographic in the city of Philadelphia and as a result, rent growth and vacancy have continuously outperformed the Philadelphia MSA. As of 1Q22, year-over-year rent growth in Washington Square West reached 12.9%. In addition, vacancy levels as of 1Q22 for 20+ unit properties decreased to 4.3%, which is well below Center City’s average vacancy rate of 5.2%. 

Stable Cash Flow With Sizable Loss-To-Lease

  • Spruce Apartments provide investors with a stabilized, cash-flowing Portfolio that has historically operated at or above 95% occupancy. Current ownership strategically renovated and re-leased all 35 units with a focus on occupancy. This, paired with the effects of COVID-19, led to ownership’s inability to maximize rents, leaving an investor with the opportunity to capitalize on sizable loss-to-lease upon renewal and signing of new leases. 

Additional Revenue Enhancing Opportunities

  • In addition to rental upside, an investor is presented the opportunity to install washers and dryers in the remaining 11 units, which has proven to achieve quantifiable rental premiums. Furthermore,1026 Spruce Street features an unutilized basement space that can accommodate revenue generating opportunities including a package delivery system, storage lockers, resident lounge, or an additional residential unit.

Attractive Asset Quality

  • Current ownership has invested $1.4 million since acquisition addressing unit renovations, exterior building capital needs, and improving curb appeal, resulting in minimal deferred maintenance. 

Dynamic Washington Square West Location

  • The Portfolio’s idyllic Washington Square West location offers residents a balanced urban lifestyle with serene tranquility adjacent to Philadelphia’s most coveted, protected park. 

Steps From World-Renowned Medical Institutions

  • Higher education and healthcare remain the prime engines of Philadelphia’s economy, accounting for 33% of jobs citywide and 20% of Center City’s employment. Since 2009, this sector has added jobs at all skill levels at the rate of 2% per year.
Last Updated Date: 11 Aug 2022

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Last Updated Date: 11 Aug 2022

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