Real estate company OneFive Capital has acquired Next LVL, one of the largest modular multifamily buildings in the country, for $88 million. The seller of the apartment community was Alterra Property Group. With an address at 4233 Chestnut St. in the University City neighborhood of Philadelphia, Next LVL is a Class A, 281-unit structure. The property will be renamed SOLO on Chestnut.
Rittenhouse Realty Advisors (RRA), represented the seller and brought OneFive to the deal. OneFive secured an ACORE Capital loan to finance the transaction.
“When we started talking about it, the building was half occupied,” RRA Managing Partner Ken Wellar, one of several RRA brokers who handled the deal, told Multi-Housing News. “The rents went very strong, and by the time we closed it was 80 percent occupied. So you couldn’t use traditional agency financing. ACORE as the lender gave super attractive terms on a floating rate loan.”
RRA sold the property as a development site to Alterra, which purchased the parcel in December 2019. Construction commenced in January 2020.
The 250,000-square-foot, seven-story luxury property opened for occupancy in June 2021. The building offers almost 7,400 square feet of commercial space and amenities, which include a rooftop veranda. The apartment mix ranges from studio to three-bedroom residences with features and finishes including quartz countertops and penny tile backsplashes, in-unit washers and dryers, window coverings and vinyl floors.
University City, just west of Center City, derives its name from the many universities dotting the neighborhood. The enclave is popular with students, faculty and staff seeking convenient rental apartments near campus. The neighborhood is located near the SEPTA Market-Frankford Line and trolley lines 11, 13 and 36. Residents find it easy to walk to a diverse array of nearby restaurants, shops, bars, cafes and markets.
Two months ago, a Philadelphia-area multifamily report found the city maintaining positive leasing momentum as it rebounded from 2020.