Investment Highlights

– Best-In-Market Pedestrian Location
Carriage House is centrally located between two prominent universities, The University of Pennsylvania & Drexel University. The property is 0.30 miles from the UPenn campus and just two blocks from the heart of Drexel’s campus. The Property is also pedestrian to public transportation hubs (15 min walk to 30th Street Station) and pedestrian to hospitals and the growing life-sciences and innovation employers in the area.

– Immediate Value-Add Opportunity: Operations / Multi-Family Conversion
There is significant operational upside for a new owner to improve performance whether continuing with student operations or by converting the property to conventional by-the-unit leasing. Continuing forward as a student housing asset, new ownership can improve occupancy and bottom line NOI with greater on-site management oversight, creative marketing techniques including a new website for leasing and stronger social media presence, and reducing the current ~60% expense ratio. With a unit mix exclusively comprised of studio, one- and two-bedroom units, Carriage House can naturally be phased to conventional multi-family product which would allow for a greater capture of the University City young professional demographic growth, with the property maintaining its position as a value provider in the market compared to newly delivered Class-A product. Additional expense reductions to be considered under a mult-family conversion include lower on-site payroll, new utility structuring and a lower turnover expense.

– Immediate Value-Add Opportunity: Capital Investment
Numerous options exist for new ownership to renovate the units, common area, and amenity spaces in order to reduce the gap between the property and top-of-market Class-A rents, while improving occupancy and still maintain an attractive rent spread to the comp set. In-unit renovation opportunities include: renovating kitchens and bathrooms with new LVT flooring, new cabinets, stone countertops, new fixtures, stainless steel appliances, new furniture package & TVs provided in living area (if continuing as student housing focused). Amenity and common area potential improvement upgrades include: updating and capitalizing on the 3,800 SF of underutilized space adjacent to the entrance on 36th Street that is currently being underused as commercial and resident storage. This space can be easily enhanced to create a new sense of arrival to potential new residents and existing residents that call Carriage House home. Other possible enhancements include: redesigned leasing space and lobby, expanded fitness center, study/work areas, community space/lounge, updated exterior courtyard. An external facade refresh, including enhancing the numerous unit balconies/porches and entrances to the property on Powelton Ave, 35th Street and 36th Street would also help enhance curb appeal at the property.

– World Class Universities & Hospitals
The University City District is an Education and Medicine hot-spot spanning 2.4 miles in West Philadelphia. It has been touted as the region’s leader in education, science, and innovation, as the world-class institutions within the district have generated over 80,000 jobs in fields including higher-education, medicine, technology, real estate, and hospitality. The hospitals situated in University City include Children’s Hospital of Philadelphia (CHOP), The Hospital of the University of Pennsylvania (HUP), Penn Presbyterian Medical Center, and the Michael J. Crescenz VA Medical Center. They serve as a vital part of the economy, employing a combined total of over 36,000 doctors, nurses, techs, and other hospital positions. With the addition of the Pavilion from Penn Medicine and further expansions forthcoming from both HUP and CHOP, University City remains positioned to be a national healthcare leader for years to come.

– Higher Education Hot Spot
The University of Pennsylvania & Drexel University have a combined total enrollment for fall 2023 of approximately 50,000 students. Additional higher education institutions in the submarket include: Community College of Philadelphia West Campus, the Restaurant School at Walnut Hill College, and Saint Joseph’s new University City campus after their merger with the University of the Sciences. The greater Philadelphia area is the 4th largest MSA by concentration of post-secondary students in the U.S., with over 440,000 total students and over 100 colleges and universities. Furthermore, 54% of College students stay in the area after graduation, as Philadelphia has seen a 115% increase in college educated young professionals (ages 25-34 yo.) living and working in the area from 2010 to 2023.

– Strong Demographics & Economic Tailwinds
University City accounts for ±12% of all jobs within Philadelphia, despite representing only 1.7% of the City’s total footprint. Over 20,000 job postings for positions within University City were listed in 2022, and nearly 70% of University City’s 80,000+ jobs within the neighborhood pay over $40,000 per year. The neighborhood of over 53,000 residents is made up of a mix of students, families, and young professionals with an average age of 26.9 years old. University City ranks as one of the top growing tech and life sciences submarkets in North America. UCity’s status as a major employment hub grows each year. This section of Philadelphia is home to about 5 million square feet of office space, with 800,000± square feet of additional space under construction.

– Minutes from a Regional Transportation Hub
The William H. Gray III 30th Street Station is the third busiest Amtrak station in the country with 4 million annual passengers. Through Amtrak, SEPTA and NJ TRANSIT, the station offers a total of 19 rail and subway lines, 12 bus lines, and allows travelers be an 18-minute train ride from Philadelphia International Airport which offers over 500 daily flight departures. 30th Street station also enables travelers to be within an 1 hour train ride to NYC and a 1.5-hour train ride to Washington D.C.