The Arch Luxury Apartments
1701 Arch St, Philadelphia, PA, 19103-2670, US
Jones Lang LaSalle Americas, Inc. (“JLL”) is pleased to present qualified investors the opportunity to acquire The Arch (the “Property”) a 111-unit, restore-to-core, high-rise offering featuring 11,231 SF of ground-floor retail situated on the corner of 17th & Arch Streets in the coveted Logan Square neighborhood of Philadelphia.
Constructed in 1921 as a purpose-built office building, existing ownership acquired the asset in 2007 and successfully repurposed it to feature 111 apartments with 11,231 SF of ground-floor retail in 2012. This unrivaled high-rise offers well designed studio, one-bedroom, and two-bedroom units averaging 642 square feet. The Property features aging unit finishes and has historically operated at or above 95% occupancy, providing an investor the opportunity to capitalize on the Property’s historic performance fundamentals, while developing a systematic restore-to-core renovation to meet the market’s demand for luxury finishes.
- The Arch was redeveloped in 2012 and provides an investor the opportunity to acquire a well-located, stabilized high-rise that features aging unit finishes and below market rents. New ownership can implement a luxury renovation program in all 111 units that will garner premiums of more than $300. Unit upgrades include quartz countertops, movable kitchen islands, under cabinet lighting, and upgraded bathroom finishes. Furthermore, an investor can enhance the existing amenity package by offering pet washing stations, cold storage, package lockers, and more to reposition the asset amongst its competitive set. In addition to a streamlined renovation program, an investor can focus on marking the in-place rents to market upon turnover and renewal as the in-place one- and two-bedroom rents trail the market by upwards of $500.
Impressive Rental Performance
- The Arch has boasted impressive rental performance over the past several months due to the asset’s below market rents and proximity to Center City's largest employers. Furthermore, the Comcast headquarters, which is adjacent to The Arch and employs over 8,000 is requiring all staff to return to the office three days per week following labor day, which will further promote foot traffic and drive Center City rental rates.
Compelling Submarket Fundamentals
- As a result of the pandemic, rents across Center City were not maximized over the trailing 24-month period, leaving investors the ability to capitalize on a sizable loss-to-lease upon acquisition while developing a comprehensive restore-to-core program.
Irrefutable Demand Drivers
- Logan Square’s luxury apartment market is supported by Center City’s healthy labor pool and outstanding demographics. In addition to the supportive submarket-level employment fundamentals, the renter demographic at The Arch consists largely of educated, high-earning professionals that are insensitive to price increases, further supporting the rental upside opportunity.