As Center City development progresses westward, a handful of properties are up for sale in what has become a hotspot between Rittenhouse Square and the Schuylkill River.
AMC Delancey Group has listed three apartment buildings near the intersection of 22nd and Walnut streets for $4.5 million, and Zirc Investments is asking $3.3 million for an 8,986-square-foot office building at the same intersection.
The properties up for sale are:
- 126 S. 22nd St. (AMC Delancey Group)
- 2205 Walnut St. (AMC Delancey Group)
- 2213 Walnut St. (AMC Delancey Group)
- 2200 Walnut St. (Zirc Investments)
“This is really a connector between Rittenhouse Square and University City,” said MPN Realty’s Nadia Bilynsky, who is representing AMC Delancey. “There’s a tremendous demand for apartments, especially apartments, in this cluster of Rittenhouse right now.”
The three apartment buildings, which have a combined 26 units, are being marketed as value-add opportunities, meaning a buyer could renovate the apartments and common areas and raise the rents. The portfolio consists of 17 one-bedroom apartments and nine studios. The three buildings are all listed as contributing properties of the Philadelphia historic register.
The average rent among the 26 units is $1,097, according to marketing material from MPN Realty. Among 17 comparable properties nearby, the average rent is $1,525, according to data from CoStar.
“If you’re priced appropriately in this pocket of Rittenhouse and other areas of the city as well, there’s a demand for value-add apartments that a buyer can come in, renovate kitchens, bathrooms and up their rent,” Bilynsky said.
Bilynsky said activity in the area around 22nd and Walnut has changed recently. What was once an overlooked section of Center City is seeing more ground-floor commercial openings and new development nearby.
At 2201 Walnut St., Dranoff Properties plans to develop the site of an existing Sunoco gas station. A block west, at 2301 Walnut St., Trammel Crow Co. plans to develop the site of a former Rite Aid. At 2204 Walnut St., Flamingo Bay Investments has proposed a 10-story commercial and residential building. Three buildings at 2007-11 Walnut St., the site of the former Irish Pub, are also up for sale.
“It just makes sense that we’re moving west,” said Denise Baron, a real estate consultant and business strategist for The Baron Network who works with Zirc Investments. “West in Center City, this is probably the hottest neighborhood that still has a nice residential community feel.”
Zirc’s building at 2200 Walnut St. was built in 1877 and is three stories with the typical floor size at 2,995 square feet. Zirc bought the building 15 years ago to support real estate brokerage Space & Company. This past spring, the firm moved to 100 E. Penn Square, prompting Zirc to sell the building, Baron said.
It presents yet another investment opportunity in an area with increasing real estate activity.
“It’s all about location, location, location,” Baron said. “And lifestyle, lifestyle, lifestyle.”
By Paul Schwedelson – Reporter, Philadelphia Business Journal
Contact Nadia Bilynsky at (267) 546-1718 for more information on this listing.