Dalzell Capital Closes on $21M Acquisition of Philly Mixed-Use Property
By Cathy Cunningham June 28, 2018 11:25 am
reprints
Dalzell Capital Partners has closed on the $21 million acquisition of Waverly Court, a mixed-use property located in Center City, Philadelphia, Commercial Observer has learned.
The Connecticut-based real estate investment firm—led by Starwood Capital’s former global head of capital markets, Christian Dalzell—acquired the asset from Yess Properties’ Dovid Doniel, assuming an Investors Bank loan on the property in the process. The loan assumption represented the acquisition financing, Dalzell told CO.
The transaction marks the Dalzell’s third City Center acquisition in the past year. The firm also purchased 1430 South Street, a 35-unit mixed-use property, for $10.8 million in August 2017, and 514 South Street, a 33-unit mixed-use property, for $10.35 million in December 2017.
“There’s a great combination of institutional and high-net-worth capital coming into Philadelphia,” Dalzell said. “We’re seeing a number of sophisticated owners and investors partnering to transact, so there’s constant growth in the area.”
Waverly Court—erected in the early 1900s and located at 412-426 South 13th Street—features 61 loft-style apartments and 2,800 square feet of commercial space leased to Amis Trattoria restaurant. Thirty-four of the property’s residences were delivered in July 2017 and the original 27 units have been fully renovated.
“Waverly Court represents the latest step in expanding our presence in Center City and advances our investment strategy of acquiring properties that have the ability to deliver long-term, stable cash flows and outsized value-add returns,” Dalzell said. “We believe the strengthening Philadelphia job market and accelerating household growth, combined with our differentiated product and service-oriented offering will generate consistently high occupancies, sticky tenancy and above average rent growth.”
Including Waverly Court, Dalzell Capital owns and manages five multifamily and mixed-use properties located in Philly and Connecticut. The company also completed value-add acquisitions of partial interests in three properties located in the Piedmont Triad region of North Carolina. The aggregate gross value of Dalzell Capital’s portfolio today is roughly $175 million.
“Our goal is simple – we want our properties to set the standard for service, quality and elegance in their respective markets,” Dalzell said. “With that as our primary tenet, we will continue to grow the portfolio prudently in specifically targeted markets that exhibit above average employment and household growth, and community investment.”
