PHILADELPHIA, PA – April 15, 2019 – Holliday Fenoglio Fowler, L.P. (HFF) announces it has closed the sale and secured financing for The Commonwealth, a 98-unit, high-rise apartment building in Philadelphia, Pennsylvania.

HFF marketed the properties exclusively on behalf of the seller, global real estate investment manager Invesco Real Estate, and procured the buyer, a joint venture partnership between The Carlyle Group and Alterra Property Group.  In addition, HFF worked on behalf of the new owner to arrange acquisition financing.

The Commonwealth was originally constructed in 1906 and underwent a full restoration in 2012 that was completed by Alterra Property Group.  Situated at 1201 Chestnut Street, the property’s Midtown Village location has earned it a Walk Score® of 99 and offers residents direct access to all of Center City, Philadelphia’s employment, lifestyle and transportation amenities.  The 15-story building consists of 98 residential units averaging 711 square feet and 8,247 square feet of ground-floor retail.  Units feature stainless steel appliances, granite countertops, European maple cabinetry, wood plank flooring and full-size washers and dryers.  The residential component is 99 percent occupied and the retail component is fully leased to 7-Eleven and Mitchell & Ness Nostalgia Co., which is the American sports clothing company’s only brick and mortar location.

The HFF investment advisory team representing the seller was led by senior managing director Mark Thomson, senior director Carl Fiebig and director Francis Coyne.

HFF’s debt placement team representing the new owner was led by managing director Ryan Ade.

“We have seen a significant uptick in interest for core-plus properties in the Philadelphia region,” Thomson said.  “This was a great opportunity for investors to buy a core-plus building at an attractive basis with upside in one of the best locations in Center City, Philadelphia.  With a lack of velocity of core-plus deals of this size in the area, the property drew significant interest from local, regional and national investors.  We conducted 31 tours of the property, which resulted in offers from 18 different companies.”

McCann Realty Partners, LLC ("McCann") and its joint venture partner, The Carlyle Group ("Carlyle"), acquired Marquis on Cedar Springs, a 165-unit apartment community located in Dallas, TX. The property will be re-branded Radius Turtle Creek. Built in 2001, the four-story, mid-rise property with a below-grade, two-level parking garage is located at 3604 Cedar Springs Road in Dallas, TX. The community is within the exclusive neighborhood of Turtle Creek, and is bound by Uptown and Downtown Dallas to the south and the high-end residential neighborhoods of Highland Park and University Park to the north. Residents are within walking and biking distance to a wide variety of shopping, dining, entertainment and recreational destinations including Katy Trail, West Village, Klyde Warren and Reverchon Parks, the Arts District, the American Airlines Center and Victory Park.

The property presents a compelling value-add opportunity. McCann's business plan focuses on repositioning the property with a significant capital investment to upgrade the interior finishes, amenities, and clubhouse and leasing areas. The property will be managed by Pegasus Residential.

"The project has significant untapped value, plus a great location in a high-end neighborhood providing access to a growing employment center of Dallas," said McCann's Managing Director, Tre Banks. "By investing capital on interior finishes and common area amenities, we will be able to create value for our partnership and enhance our residents' lifestyles."

"Radius Turtle Creek fits our core plus strategy with near-term opportunities to significantly improve the overall positioning of the property with a post-renovation cost basis below replacement cost," said Matt Akin, President of McCann. "We are pleased to work with Carlyle on this transaction and look forward to building a long-term relationship with them."

McCann continues to seek new acquisition and development opportunities in the Mid-Atlantic, Southeast and Texas. For acquisitions and development in the Southeast, please contact Thomas Upson, Vice President of Acquisitions, at (804) 290-8870, ext. 317. For acquisitions and development in Texas, please contact Tre Banks at (713) 898-0740.