Alterra Sells Supersized Modular Apartment Building In University City For $88M
Alterra Property Group has closed on the sale of one of its most recent multifamily deliveries — a development built using modular construction.
Alterra closed the sale of the seven-story, 281-unit apartment building at 4233 Chestnut St. to OneFive Capital for $88M on Friday, Bisnow has learned. A Rittenhouse Realty Advisors team led by Managing Partner Ken Wellar, which had brokered the sale of the property as a development site to Alterra in 2019, procured the buyer for Alterra.
The 250K SF building, which Alterra had named Next LVL, is one of the largest modular multifamily buildings in the country. OneFive Capital, a family wealth office based in Philadelphia, will be renaming the property SOLO on Chestnut, a representative for RRA said. To finance the transaction, OneFive secured a loan with ACORE Capital, Wellar told Bisnow.
Construction on 4233 Chestnut began in January 2020, and despite pandemic-related delays, opened to occupants in June of last year. At the time of closing, the residential portion of the building was 80% occupied. The building also contains a 54-space underground parking garage and a nearly 7,400 SF retail space occupied by Fine Wine and Good Spirits, the commercial face of the Pennsylvania Liquor Control Board.
The liquor store had been a tenant at the strip mall opposite 43rd Street from 4233 Chestnut, but its move was precipitated by the shopping center's closure after the lot was sold as a development site of its own. An anonymous developer's proposal for an apartment building similar in size to 4233 Chestnut made its way through Civic Design Review late last year, part of an ongoing wave of dense residential development along Chestnut Street in University City.
Though OneFive is run by Managing Partner Kameron Zitelli, the family behind the fund prefers to remain anonymous, Wellar said. In 2017, RRA secured an unnamed investment fund based in New York, also led by Zitelli, as the buyer for a 72-unit multifamily property, also built using modular construction, near Temple University's campus.
