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Jones Lang LaSalle Americas, Inc. (“JLL”) is pleased to present Sanctuary Lofts & The Rectory (the “Properties”), a 38-unit, value-add apartment opportunity situated on the corner of Fitzwater Street and Grays Ferry Avenue in the highly sought after Graduate Hospital neighborhood of Philadelphia.
Sanctuary Lofts & The Rectory represent the unique opportunity to acquire an irreplaceable multi-housing asset with attractive in-place cash flow and implement a light value-add strategy to maximize the Properties’ economic performance in one of Philadelphia’s most desirable residential neighborhoods.
COMPELLING RENTAL UPSIDE
- Sanctuary Lofts & The Rectory were redeveloped in 2014-2015 and provide an investor the opportunity to acquire two well-located, stabilized assets that feature aging unit finishes, below market rents, and significant management efficiencies. An investor can focus on systematically increasing rents in the near-term as the properties’ in-place rents trail the market by more than 15%.
TAX ABATEMENT BENEFIT
- Sanctuary Lofts & The Rectory qualified for a 10-year tax abatement in 2016, which is available in the City of Philadelphia for new or redeveloped properties. The abatement is limited in whole or in part to that value which has been added to the qualifying improvements. The land value remains fully taxable during the abatement period. The tax abatement for both Sanctuary Lofts and The Rectory will expire on December 31st, 2025.
COMPELLING MARKET FUNDAMENTALS
- Per CoStar, year-over-year rent growth in Graduate Hospital is forecasted to reach 16% by Q3 2022. This unprecedented growth outpaces neighboring Rittenhouse Square and University City by more than 10%. Furthermore, this trend is expected to continue through Q2 2023, enabling future ownership to capitalize on strong market fundamentals while developing a comprehensive renovation program.