PHILADELPHIA — Dalzell Capital Partners, a Westport, Conn., real estate investment firm, has paid $21 million to buy Waverly Court, an apartment complex in Center City.
The property at 412-26 S. 13th St. last traded in March 2014 for $6.92 million. While multifamily properties have appreciated in Philadelphia, the vast difference in sale prices has to do with the expansion of Waverly Court during that time to 61 apartments from 27 apartments. Amis, a restaurant, continues to be the retail tenant in the building.
David Daniel of Bala Cynwyd was the seller in the most recent transaction. Ken Mallin of MPN Realty represented Daniel in this latest transaction and Mallin along with colleague Josh Nadel represented the buyer.
When Daniel bought Waverly Court four years ago, the property included an adjacent parking lot. He decided to develop it with an addition that blends into the existing structure, which was originally a warehouse that was converted. “It’s really quite a nice project,” Mallin said.
The purchase of Waverly Court is the third for Dalzell Capital in Philadelphia and the firm plans to look for other potential deals in the city. Last year, the company bought 1430 South St., which is a 35-unit mixed-use building for $10.8 million and 514 South St., which is a 33-unit mixed-use property, for $10.35 million.
“The interest in Philadelphia really came from an analysis I did after I left Starwood,” said Christian Dalzell, managing partner of the firm. Prior to starting the real estate investment firm, Dalzell worked at Starwood Capital Group. Through his research, Dalzell became impressed with Philadelphia, its increase in millennial and general population, multifamily development activity, job growth and how walkable it is.
“Once I figured out what I wanted to invest, I immersed myself in the local market,” Dalzell said. “We have been focused on areas where you have accelerating job growth and household formation that are near primary transportation areas.”
The company buys properties that are more boutique in size to try to create and maintain a sense of community so that tenants feel connected to a property. At Waverly, Dalzell plans to create a uniform facade across the building, upgrade common areas as well as renovate its 27 original units.
Natalie Kostelni, Reporter
Philadelphia Business Journal