Apartment Building Sale in Philadelphia Sets New Record

By Adriana Pop, Associate Editor

A new transaction highlights the strength of Philadelphia’s multifamily market.

Icon, a 206-unit Art Deco apartment building at 1616 Walnut St., recently sold for $112 million, which equates to a record-breaking price tag of more than $542,000 per unit.

According to the Commercial Observer, Meridian Capital Group negotiated an $80.4 million Fannie Mae loan on behalf of the property’s new owner, Castle Rock Equity Group of New York.

The 10-year loan, originated by Berkadia Commercial Mortgage, includes a 4.06 percent interest rate and a 30-year amortization schedule.

Located less than two blocks from Rittenhouse Square, the 25-story historic tower was previously owned by a partnership involving Federal Capital Partners, Cross Properties and Alterra Property Group.

The companies acquired the high-rise in 2012 for an undisclosed amount and invested $50 million into its conversion from office to residential use.

Open since April 2014, the rebranded Icon high-rise now features a mix of one-, two- and three-bedroom Philadelphia apartments, with an average size of 730 square feet. There are also 160 parking spaces and 23,000 square feet of retail space occupied by Santander Bank, Theory, TownHome and Pizzeria Vetri.

Amenities include a sky deck with a grilling station, herb garden, outdoor living area and fireplace; a private dining room with fireplace; club level with kitchen, pool table, and large-screen televisions; and a fitness floor with a yoga studio and massage room.

What is special about this conversion project is that the developers worked with Delos, a New York real estate company that came up with the Well Building standards, which are similar to sustainable and LEED building standards, but focus on promoting human health and wellness within the built environment.

The property came up for sale in October and was marketed by Jim Galbally and Erin Miller of JLL. According to the Philadelphia Business Journal, the Icon apartments command an average rental rate of about $3.50 per square foot, which ranks as one of the highest in Philadelphia’s Center City.

Photo credits: www.icon1616.com

Find out more about the newly-developed WELL Building Standard, the first protocol of its kind to focus on human wellness within the built environment.