Philly Developer Sells Pair of Apartment Buildings for $93M

One Philadelphia developer is getting into the Eagles’ spirit of celebration by selling a pair of properties while keeping a minority interest in both.

Palladium Group sold majority shares in Liberty Square and Corner 2nd to Delaware-based Commonwealth Group for a combined $93 million, the Philadelphia Business Journal reported. The properties face each other across North American Street and straddle a trio of neighborhoods: Fishtown, Northern Liberties and Olde Kensington.

The transaction was part of a 1031 exchange when owners trade investment properties to defer capital gains taxes.

Despite the package deal, the properties sold for vastly different sums. Corner 2nd at 1222 North 2nd Street went for $21.6 million, or $304,000 per unit, according to property records. Liberty Square at 1203 Germantown Avenue, meanwhile, sold for $71.7 million, according to Real Capital Analytics. That’s $375,000 per unit.

Both buildings are relatively new to the Philadelphia multifamily scene. The five-story, 71-unit Corner 2nd has been online for less than a year. The property has 9,000 square feet of retail space, which is leased by two tenants who are planning on opening their businesses soon.

Residential amenities include a game room, movie theater, coworking spaces and a rooftop patio. One-bedroom units rent for between $2,800 and $3,600.

Liberty Square, a three-building, 191-unit property, was completed in 2021. It includes 22,000 square feet of commercial space — which is 68 percent leased — a courtyard and a pool for residents.

Bridge One Management is taking over property management for both buildings. The occupancy rate of both is in the high 90s, according to Bridge One.

Philadelphia’s multifamily sector recently took a backseat to the industrial market in terms of collective value. As of the fourth quarter, the city’s industrial properties were valued at a collective $77.8 billion, according to a report by CoStar, with the city’s multifamily properties trailing behind at a cumulative value of $75.9 billion.

— Holden Walter-Warner