PHILADELPHIA, PENNSYLVANIA - 2015, 2017, 2019 and 2021 FRANKFORD AVENUE Confidential Offering Memorandum - LoopNet
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
Confidential Offering Memorandum 2015, 2017, 2019 and 2021 FRANKFORD AVENUE PHILADELPHIA, PENNSYLVANIA
Binswanger is pleased to offer to qualified buyers this incredibly rare .14 acre development opportunity in the heart of Philadelphia’s Fishtown neighborhood. This assemblage consists of four contiguous lots along Frankford Avenue featuring approximately 4,062 sq. ft. of mixed-use space situated on .14 acres. With over 75' of frontage on Frankford Avenue, as well as 37' of frontage on Sepviva Street, this assemblage is an ideal opportunity for any residential or commercial redevelopment. 2015 Frankford Avenue and 2017 Frankford Avenue (Lots 1 and 2) each consist of approximately .05 acres, and together offer approximately 35'5" of frontage on both Frankford Avenue and Sepviva Street. 2019 Frankford Avenue and 2021 Frankford Avenue (Lots 3 and 4) each consist of approximately .02 acres and together offer approximately 39'5" of frontage on Frankford Avenue. Additionally these two lots also currently consist of approximately 4,068 sq. ft. of mixed-use space. 2015, 2017, 2019 AND 2021 FRANKFORD AVENUE – PHILADELPHIA, PA 2
PROPERTY OVERVIEW
ACREAGE 2015 Frankford Avenue – .05 acres
2017 Frankford Avenue – .05 acres
2019 Frankford Avenue – 2,106 sq. ft. / .02 acres
2021 Frankford Avenue – 1,962 sq. ft./ .02 acres
Total – .14 acres
ZONING CMX -2 – Small Scale Neighborhood Commercial and Residential Mixed Use (City of
Philadelphia)
TAXES (Estimated 2019) 2015 Frankford Avenue – $3,391.06
2017 Frankford Avenue – $472.56
2019 Frankford Avenue – $3,011.35
2021 Frankford Avenue – $2,796.55
Total – $9,671.52
LOCATION The site is located in the Fishtown neighborhood, with nearby access to I-95, the Betsy
Ross Bridge and easy access to Center City Philadelphia. The property is also serviced by
Septa Route’s 5, 33 and the Market Frankford Line (Berks Station).
2015, 2017, 2019 AND 2021 FRANKFORD AVENUE – PHILADELPHIA, PA 3
ZONING
All four parcels within the assemblage have a zoning designation of CMX-2 per the City of Philadelphia. While somewhat
common throughout this part of Philadelphia, this zoning designation is still highly sought after, as it permits a wide range of
uses for any user or developer.
CMX – 2 – City of Philadelphia
The CMX-2, Neighborhood Commercial Mixed-Use district is primarily intended to accommodate active commercial and
mixed-use development, including neighborhood-serving retail and service uses. The range of allowed uses is broader than
the CMX-1 district.*
*City of Philadelphia – Zoning Code
Permissible Uses: Household Living; Passive Recreation; Family Day Care; Group Day Care; Day Care Center; Educational Facilities;
Fraternal Organization; Hospital; Libraries and Cultural Exhibits; Religious Assembly; Safety Services; Utilities and Services, Basic; Building
or Tower-Mounted Antenna; Business, Professional Office; Medical, Dental, Health Sole Practitioner; Government Office; Building
Supplies and Equipment; Consumer Goods (except Drug Paraphernalia and Guns); Food, Beverages, and Groceries; Pets and Pet Supplies;
Sundries, Pharmaceuticals, and Convenience Sales; Wearing Apparel and Accessories; Business Support; Prepared Food Shop; Sit Down
Restaurant; Financial Services (except Personal Credit Establishments); Funeral and Mortuary Services; Maintenance and Repair of
Consumer Goods; On-Premise Dry Cleaning; Personal Services (except Body Art and Fortune Telling Services); Radio, Television, and
Recording Services; Commissaries and Catering Services; Vehicle Equipment and Supplies Sales and Rental; Moving and Storage Facilities;
Artist Studios and Artisan Industrial; Research and Development; Community Garden; Market or Community
DIMENSIONAL STANDARDS
Maximum Occupied Area Intermediate: 75%; Corner: 80%
Minimum Front Yard Depth N/A
Minimum Side Yard Width 5‘, if used
Minimum Rear Yard Depth The greater of 9' or 10% of lot depth
Maximum Height 38'
2015, 2017, 2019 AND 2021 FRANKFORD AVENUE – PHILADELPHIA, PA 4
LOCATION
The property is located in the heart of the Fishtown section of Philadelphia. Traditionally, the area was known as one of the
great epicenters of the shad fishing industry of Philadelphia where employment initially focused around the nearby
waterfront, and the activities of fishermen. For centuries, Fishtown was a working class area until deindustrialization
eventually took its hold on the neighborhoods which lead to a significant population loss, high unemployment, economic
decline, and the abandoning of homes in the neighborhood although some residents with ancestral history in the area still
remain. In more recent years, Fishtown has experienced significant gentrification with almost a “rebirth” of the area, with
soaring property values as well as the opening of numerous new neighborhood offerings such as art galleries, bars,
restaurants etc. Additionally, Fishtown was recently named America’s “Hottest New Neighborhood” by Forbes Magazine.
2015 Frankford Avenue 2017 Frankford Avenue 2019 Frankford Avenue 2021 Frankford Avenue
.05 Acres .05 Acres 2,206 Sq. Ft. 1,962 Sq. Ft.
.02 Acres .02 Acres
2015, 2017, 2019 AND 2021 FRANKFORD AVENUE – PHILADELPHIA, PA 5
LOCATION 2015, 2017, 2019 AND 2021 FRANKFORD AVENUE – PHILADELPHIA, PA 6
DEMOGRAPHICS/STATISTICS In addition to several other emerging neighborhoods in the metro Philadelphia area, Fishtown has been experiencing a large amount of economic growth and revitalization, especially within the last five to ten years. Since the year 2012 the median home value in Fishtown has more than doubled and is expected to increase significantly throughout 2019. Source: Zillow 2015, 2017, 2019 AND 2021 FRANKFORD AVENUE – PHILADELPHIA, PA 7
DEMOGRAPHICS/STATISTICS
Fishtown Age Breakdown
Household Income Distribution Source of Income
Source: areavibes.com
2015, 2017, 2019 AND 2021 FRANKFORD AVENUE – PHILADELPHIA, PA 8
POPULATION/EMPLOYMENT STATUS
Population within a one mile radius of the subject site grew over 10% percent since the year 2010 and is expected to steadily
increase through the year 2023.
Radius 1 Mile 3 Mile 5 Mile
2023 Projection 59,637 430,610 1.041.913
2018 Estimate 57,857 419,008 1.022.464
2010 Census 51,144 376,277 963,599
Growth 2018-2023 3.08% 2.77% 1.90%
Growth 2010-2018 13.13% 11.36% 6.11%
Additionally, more than half of Fishtown residents are white collar workers, with the average age of a Fishtown resident being
32.29 years old, which is below the citywide average of 34.1
Fishtown Population Demographics Occupational Employment in Fishtown
Source: Point2homes.com
2015, 2017, 2019 AND 2021 FRANKFORD AVENUE – PHILADELPHIA, PA 9
NEW AREA RESIDENTIAL DEVELOPMENTS
Due to the exponential growth of the neighborhood, demand for housing has soared, resulting in almost immediate
development projects popping up throughout the area. Some of the more notable projects are:
Trenton Stables (AGA Developers) – Trenton Avenue
This boutique townhome development consists of six residential units on Trenton Avenue. Each
home features over 3,300 sq. ft. of residential space with luxury finishes.
Frankford Square (AGA Developers) – Blair Street/Frankford Avenue
This mixed-use development consists of 14 townhomes total, seven on Blair Street, and seven on
Frankford Avenue. A portion of the townhomes feature street level commercial space, while
others offer on-site parking. Each townhome offers additional outdoor space as well as numerous
high-end finishes.
South Square (AGA Developers) – Palethorp Street
This gated community of 17 townhomes is located approximately 1.5 blocks from the el station
and offers residents roof top decks and access to multiple nearby neighborhood amenities.
Kensington Courts (Riverwards Group) – East Lehigh Avenue
This 155 unit housing development by the RiverWards Group will feature 60 single family homes,
24 duplex units and 71 condominiums. The entire site will sit on approximately four acres and
feature commercial space and several other notable amenities.
Avenue 30 (Riverwards Group) – Amber Street
This 30 unit housing development where Amber Street and Lehigh Street intersect, was designed
to go “against the grain” of traditional development in the area with its square design. These
homes were brought to market during fall of 2017, and were completely sold out within a year.
2015, 2017, 2019 AND 2021 FRANKFORD AVENUE – PHILADELPHIA, PA 10LOCAL ATTRACTIONS AND AMENITIES Some other local neighborhood attractions and amenities in and near the Fishtown area are: Philadelphia Brewing Co Vestige Atlantis, The Lost Bar Argentine Tango School Cedar Point Bar & Kitchen Palmer Park WM. Mulherin’s Sons Amalgam Comics & Coffeeshop Thang Long Noodle Franny Lou’s Porch Grace & Glory Yoga Minnow Lane Little Baby’s Ice Cream Martha Urban Axes Memphis Taproom Pizza Brain Greensgrow Farms 2015, 2017, 2019 AND 2021 FRANKFORD AVENUE – PHILADELPHIA, PA 11
PHILADELPHIA
Philadelphia is the second largest city on the east coast and ranks as the fifth largest in
the United States. The city encompasses 135.1 square miles at the confluence of the
Delaware and Schuylkill Rivers and is located 100 miles south of New York and 133 miles
north of Washington, DC. The Philadelphia area has a multitude of unique
characteristics that make it a highly sought after place to call home.
Some of these notable characteristics are:
6th largest workforce in the US of just over 3 million, including highly skilled talent in key industries: life sciences, energy and
manufacturing, technology, financial services, and more.
As one of the nation’s hubs for higher education, Philadelphia has over 100 degree-granting institutions enrolling 440,000 full and
part-time students and 90,000 degrees annually according to Select Greater Philadelphia.
1,049 retailers in Center City
1,006 food establishments with 431 outdoor seating locations in Center City area alone
25 airlines offering 252 departures to 130 non-stop destinations in the U.S. and around the world (33 international destinations)
45 million people live within 200 miles — putting Philadelphia at the core of the country’s wealthiest and most-densely populated
area
Philadelphia is ranked as the best city in America for diversity in science, tech, engineering, and math (STEM) fields, by SmartAsset
60% of the US population lives within a two-hour flight of Philadelphia
Strategically located between New York (1 hour 20 minutes) and Washington DC (1 hour 45 minutes) on Amtrak’s Acela Express
Home to the second largest university population in the US and a life sciences hub, making innovation and education at the heart of
the Philadelphia story
US News ranked Philadelphia in the top 15 Best Affordable US Destinations
Source: Select Greater Philadelphia Council
2015, 2017, 2019 AND 2021 FRANKFORD AVENUE – PHILADELPHIA, PA 12TOP EMPLOYERS
According to the Department of Labor & Industry’s Center for Workforce Information & Analysis, as of year-end 2017, the top
fifty employers in Philadelphia County were
Rank Employer Rank Employer
1 University of Pennsylvania 26 SmithKline Beecham Corporation
2 City of Philadelphia 27 Bayada Home Health Care Inc
3 Federal Government 28 NBC Philadelphia Merchants
4 School District of Philadelphia 29 Wells Fargo North America
5 Children’s Hospital of Philadelphia 30 Ace American Insurance Company
6 Temple University 31 Patriot Home Care Inc
7 Thomas Jefferson University Hospital 32 Philadelphia Gas Works
8 Southeastern PA Transportation Authority 33 Resources for Human Development
9 American Airlines Inc 34 ACME Markets
10 Drexel University 35 Cardone Industries Inc
11 Temple University Hospital Inc 36 Vital Support Home Health Care Agency
12 Albert Einstein Medical Center 37 PNC Bank North America
13 State Government 38 Community College of Philadelphia
14 Thomas Jefferson University 39 Wawa Inc
15 Universal Protection Service LLC 40 Philadelphia Eagles LLC
16 Comcast 41 Open Systems Healthcare Inc
17 Independence Blue Cross 42 Rite Aid of Pennsylvania Inc
18 Aramark 43 Sugarhouse HSP Gaming LP
19 Pennsylvania Hospital 44 Target Corporation
20 Presbyterian Medical Center 45 St. Christopher's Hospital for Children
21 Aria Health 46 Aramark Management LLC
22 Hahnemann University Hospital 47 Cigna Health & Life Insurance
23 Wal-Mart Associates Inc 48 The American Oncologic Hospital
24 UPS Inc 49 PriceWaterHouseCoopers LLP
25 Jefferson University Physicians 50 St. Josephs University
2015, 2017, 2019 AND 2021 FRANKFORD AVENUE – PHILADELPHIA, PA 13PHILADELPHIA HOUSING MARKET
In the last 18 years, the average sales price of a home in the Philadelphia region has more than tripled. Additionally, the
average sales price per sq. ft. was $171 as of August 2018. This was an increase of 4% compared to the same time last year.
Price per Square Foot Median Sales Price
Source: Trulia.com
2015, 2017, 2019 AND 2021 FRANKFORD AVENUE – PHILADELPHIA, PA 14INVESTMENT AND DEVELOPMENT OVERVIEW Overview Developers have turned their sights on this area, and apartment groundbreakings rose to an all-time high in the Fishtown/Northern Liberties/Kensington area during 2017, meaning that new deliveries will be elevated during 2018−19 as the 1,200 units under construction complete. The vacancy rate will jump temporarily as these new projects deliver, but the apartment market is likely to tighten again quickly, as new construction is long overdue in micro markets with strong underlying renter demand such as Fishtown and the North Broad Street Corridor along Temple University’s campus. With most members of Philadelphia’s large millennial cohort now aging into their early 30s, it is questionable whether they will continue to drive gentrification further north into neighborhoods still struggling with serious crime problems such as Strawberry Mansion or West Kensington. However, neighborhoods that have been magnets for affluent young renters in recent years such as Brewerytown and Fishtown should continue to generate reliable rent growth, as the already existing density of row homes keeps rental construction from getting too far ahead of apartment demand. 2015, 2017, 2019 AND 2021 FRANKFORD AVENUE – PHILADELPHIA, PA 15
INVESTMENT AND DEVELOPMENT OVERVIEW Sales Historically, apartment sales volume has been fairly light in the Fishtown/Northern Liberties/Kensington area, averaging only about $7 million per year (for buildings with five or more units) since 2005. However, with apartment investors looking across the region for submarkets with lower prices per unit (and higher potential yields), investment has been above historical norms in recent years, and 2018 set an all-time record for sales in this area of the market. With most deals still under $5 million, local builders and wealthy individuals from Greater Philadelphia continue to dominate investment. However, that has begun to change in recent years as midsized investors from outside the Philadelphia region move in. Some of the most expensive sales (in terms of price per unit) in this submarket for this cycle have involved outdated industrial properties recently converted into apartments in rapidly gentrifying corners of this submarket, including Fishtown and Brewerytown. These deals have been closing at pricing between $240,000–$260,000 per unit and at cap rates in the low-6% range. In 2018, New York-based Mamiye Brothers purchased the 30-unit REACHLofts (completed in 2015) in Fishtown for $7.3 million, or $244,000 per unit, at a 6% cap rate. Prior to that sale, Texas-based Crossbeam Holdings purchased a new development, the 36-unit TheAnnex@Brewerytown (completed in 2017), for $9.2 million ($256,000/unit), at a 6.3% cap rate. For deals under $1 million (which account for most sales here), the price per unit has averaged about $74,000 since the beginning of 2018, and cap rates have averaged about 7.5%. However, pricing varies widely in this submarket, depending on building quality and neighborhood. Newly developed smaller buildings and more stately brownstones often command $150,000−$200,000 per unit, while older, more modest properties can trade for $20,000−$30,000 per unit in more blighted corners of the Kensington area. 2015, 2017, 2019 AND 2021 FRANKFORD AVENUE – PHILADELPHIA, PA 16
KEY METRICS
Fishtown/Northern Liberties/Kensington Submarket Philadelphia Market
RENT
Market Rent/Unit $1,459.00 $1,302.00
Studio $1,041.00 $1,098.00
1 Bedroom $1,268.00 $1,167.00
2 Bedroom $1,746.00 $1,401.00
3 Bedroom $1,563.00 $1,921.00
SALES
12 Month Properties Sold 26 312
Market Sale Price/Unit $198,000 $149,000
Average Market Sale Price $3,500,000 $8,600,000
12 Month Sales Volume $40,600,000 $2,300,000,000
Market Cap Rate 6.1% 6.5%
2015, 2017, 2019 AND 2021 FRANKFORD AVENUE – PHILADELPHIA, PA 17SUMMARY OF OFFER PROCESS
Binswanger of Pennsylvania, Inc. (“Binswanger”) is advising Ownership regarding the disposition of the properties located at
2015, 2017, 2019 and 2021 Frankford Avenue in Philadelphia.
These Properties will be sold “as is, where is.” Ownership will consider all offers that comply with this Offering Memorandum.
Ownership is under no obligation to accept the highest offer or any offer. To qualify for review of this offer, buyers must
follow the provisions, requirements, terms and conditions of this Offering Memorandum.
Terms and Conditions
The properties will be sold based on an open bid process with bids due on MARCH 29, 2019. No asking price has been
established, however ownership reserves the sole and absolute right to accept or reject any and all bids. The successful offer
will be selected based on a variety of criteria including, but not limited to: the offer price, contingencies and due diligence
criteria, timeline to closing, deposit funds (including “at risk” deposit at contract execution), proven ability and prior
successes in closing on a transaction of this type.
Please contact Binswanger at your earliest convenience if you wish to pursue this opportunity.
Chris Pennington
Partner and Senior Vice President
Binswanger Realty Group East
Two Logan Square
Philadelphia, PA 19103
215-448-6053
cpennington@binswanger.com
2015, 2017, 2019 AND 2021 FRANKFORD AVENUE – PHILADELPHIA, PA 18You can also read
