February 3, 2022 12:00 PM
Newmark1 announces it has completed the sale of 1500 Locust, a 45-story, mixed-use multifamily building in the famous Rittenhouse Square Submarket of Center City Philadelphia. The 612-unit property sold for $233 million—the largest single-asset sale in the history of Philadelphia’s multifamily market.
Newmark Executive Managing Directors Lizann McGowan and Erin Miller represented the seller, Barings, which traded the asset on behalf of an institutional client. The asset was buyer Fairstead’s first acquisition in Philadelphia. Transaction Manager Marybeth Farris and Financial Analyst Chris Koehler provided support on the transaction.
“1500 Locust offered a generational investment opportunity to acquire a landmark mixed-use asset in one of the nation’s most prestigious and highly sought-after submarkets,” said McGowan.
Miller added, “Having been under institutional ownership for more than three decades, the property has been meticulously maintained to blend the latest in modern living with the exceptional construction of the original design.”
Totaling 828,679 gross square feet, 1500 Locust comprises 612 multifamily units, 7,770 square feet of street-level retail and a 398-space parking garage. The asset features a mix of studio, one-, two- and three-bedroom units with an average unit size of 852 square feet. Property amenities encompass the entire 45th Floor, offering panoramic views of Center City. Amenities include resident lounge with catering kitchen, state-of-the-art fitness center, 10-seat theater room, glass-enclosed heated rooftop swimming pool with retractable windows and expansive roof deck with private cabanas and grilling areas. The street-level retail is occupied by two full-service restaurants, Blume and Fado Irish Pub, offering residents convenient dining options.
1500 Locust is strategically located at the confluence of three prominent neighborhoods in Center City– Rittenhouse Square, the Avenue of the Arts and the West Market Street office corridor. The property is situated on the southwest corner of 15th and Locust Streets, placing it four blocks from Rittenhouse Square Park, the most coveted residential address in the City of Philadelphia; one block south of Rittenhouse Row, the City’s high street retail and restaurant corridor; and four blocks south of the West Market Street office corridor. Additionally, 1500 Locust is one block from Philadelphia’s famous “Avenue of the Arts,” which is home to the historic Academy of Music, the Kimmel Center for the Performing Arts, The Merriam Theater, The Wilma Theater and The Suzanne Roberts Theater.
According to Newmark Research, sales volume for U.S. multifamily properties totaled $78.7 billion during the third quarter of 2021, the largest quarterly sales figure on record as investor appetite for multifamily properties continues to surge. The third quarter volume represented a 31.4% increase from the prior quarter and a 192.1% year-over-year increase. For the 12 months ending the third quarter of 2021, the greater Philadelphia area totaled $2.2 billion in multifamily sales volume.
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[1] Dba Newmark Real Estate in Pennsylvania
About Newmark
Newmark Group, Inc. (Nasdaq: NMRK), together with its subsidiaries (“Newmark”), is a world leader in commercial real estate, seamlessly powering every phase of the property life cycle. Newmark’s comprehensive suite of services and products is uniquely tailored to each client, from owners to occupiers, investors to founders, and startups to blue-chip companies. Combining the platform’s global reach with market intelligence in both established and emerging property markets, Newmark provides superior service to clients across the industry spectrum. Newmark generated revenues in excess of $2.5 billion for the trailing twelve months ending September 30, 2021. Newmark’s company-owned offices, together with its business partners, operate from over 160 offices with approximately 6,200 professionals around the world. To learn more, visit nmrk.com or follow @newmark.
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