Philadelphia OZ multi family....how desirable?

Question

How desirable are multi family properties 2-4 units in Philadelphia opportunity zone areas? Particularly in rapidly developing areas with rents such as the ones listed below?

$1400 1bed/1bath

$1500 2 bed/1bath

$2100 3bed/2bath

Properties are full rehabs/new construction and tenant base is young professionals.

Mayer M. · Answer

@Shawn Washington

Hey Shawn, would love to connect with you, especially being we are developing in the same neighborhood.

I’ll message you my cell # please give me a call

Thanks

Mayer M. · Answer

@Joseph ODonovan

Everything is slow these days with  L&i. Schematics are done and am doing 28 units. Working through green roof/ersa at the moment

Shawn Washington · Answer

i'm currently building in that area and have three additional multi-units I'll be starting in the next 3-4 months. Rent is projected to be $1500+ for 2/1.  There are some decent comps for 1/1 at $1200+ also. Your numbers are not off in this case.

Martin Esser · Answer

Interesting. I run those blocks every day, i'm not sure you will be scoring rents that high in that area the 1400 for a 1/1 seems much too high imo. Any data backing these rent numbers? I am also looking at properties in Sharswood area above brewery town, 19121.

Mayer M. · Answer

@Joseph ODonovan

Taking the lot behind it through zoning for 32 units+parking

Mayer M. · Answer

@Joseph ODonovan

Hey Joseph, just a rental update. My friend just rehabbed and rented 2347 N College Ave in Sharswood. It’s a triplex and he is fully leased at $1800 for the two bed unit and $1500-1550 for each of the one bed units

Joseph ODonovan · Answer

@Mayer M. They are some excellent numbers. How are you making out in Germantown?

Joseph ODonovan · Answer

@Mayer M. If you're getting those rents in Sharswood, I'd like to know your secret recipe. I will certainly follow this discussion.

Aaron Laster · Answer

@Mayer M. I'm not familiar with the Philadelphia market but depending on what price you're buying the property and your expenses, I believe that it may be worth it. I'm looking for similar deals in Indianapolis and the numbers have been looking good. I am highly interested in the progress of your multi-family acquisitions in Opportunity Zones and look forward to reading/seeing more on the topic.

Mayer M. · Answer

@Martin Esser

Sure! I should be starting on 3-4 of them in the next month or two

Philadelphia OZ multi family....how desirable?

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