Lucern Capital Partners, a real estate private equity firm, has acquired Del Campo Apartments, a pre-1900’s loft building in Philadelphia. No financial terms were disclosed.
SHREWSBURY, N.J., Oct. 18, 2019 /PRNewswire/ — Lucern Capital Partners, a real estate private equity firm based out of New Jersey, has acquired Del Campo Apartments, an irreplaceable pre-1900’s loft building, located in the heart of the Northern Liberties neighborhood of Philadelphia.
The firm, active in the Philadelphia market since 2016, is planning a full-scale luxury renovation of the building, including both common areas and unit finishes. The firm aims to curate an exceptional lifestyle experience for its tenants, who will be living in the center of the Northern Liberties universe, with access to Germantown Avenue, North 2nd Street, and other venerable neighborhood institutions within 1-2 minutes walking distance from the building. The loft building will also be rebranded to reflect its rich history in the neighborhood and variety of prior uses before housing luxury apartment rentals.
“We are extremely excited to be part of the vibrant fabric of Northern Liberties. The neighborhood has a certain organic authenticity that only time can create. Too often neighborhoods are a casualty of their own gentrification and transform into hyper-contrived versions of themselves. Northern Liberties still has its raw charm,” said Frank Forte, Managing Partner of Lucern Capital Partners.
As the firm shifts towards higher quality rental product, the principals are actively seeking product that fits their thesis of the Philadelphia marketplace. “In our opinion, Philadelphia has the most compelling luxury rental market of any major city in the Northeast. The ‘Eds and Meds’ story is real and creating a strong, affluent, and upwardly mobile tenant base who is focused on quality over quantity and lifestyle above all else. Philadelphia’s luxury market has huge headroom on a per square foot basis compared to more traditional Northeast luxury rental markets (Boston, DC, New York), even when adjusted for geo-located wage differences. Cost of living differences are also material, leaving greater runway for increases in rental rates, especially on lifestyle product,” said Frank Forte, Managing Partner of Lucern Capital Partners.
The firm which was founded in 2016, is active and focused on the Northeast and Southeast markets of the United States. The firm seeks compelling risk-adjusted yields in the multifamily arena, investing in core-plus, value-add, and opportunistic return profiles.