OVERVIEW
Off-market low basis acquisition
Address: 42 South 15th Street
Location: Philadelphia, PA
Square Footage: 137,042
Investment Profile: Core-Plus
Purchase Date: May 2005
Sale Date: October 2007
Purchase Price: $11,400,000
Sale Price: $16,800,000
INVESTMENT THESIS
Discount to Replacement Cost | Prime Location | Immediate Upside |
$83 psf – 1/3 of replacement cost and on the low end of the range for comparable buildings | One block from City Hall proximate to Chestnut Street revitalization | Below market in-place retail and office rents |
EXECUTION
REBRANDING
Remarketed asset under new name
REPOSITIONING
Addressed deferred maintenance items and increased market rents 25%
BASE BUILDING UPGRADES
Targeted rent impactful capital expenditures including upgraded lobby and façade renovation
RESULTS
Sold for $16.8 million (47% above purchase price)
JOSS REALTY PARTNERS LLC
650 Fifth Avenue, Suite 2400
New York, New York 10019
Phone (212) 710-8193
