101665 . 12 SFR Home Philadelphia, PA

Highlights:

• 100% Occupied SFR rental portfolio
• All homes have been gut renovated from the studs out with quality interior finishes
• Turn-key investment opportunity with natural value add revenue growth embedded in the market
• Ability to scale with Seller who is looking to dispose of hundreds of homes over 18 months
• Limited Cap Ex and R&M expenses for several years
• Ease of management given close proximity of homes to one another
• Improving or gentrifying area continuing to create additional neighborhood values
• Top 20 new lease asking rent growth out of top 79 non-core markets
• Significant growth potential on turn-key opportunity
• Current rents 10.5% below market rents
• Average portfolio rent is $1,438, while average market rent is $1,601
• Cap rate currently shows 6.46% at asking price
• Value-add on renewals or new leases drives revenue growth
• John Burns predicts YOY rent growth average of 4% each year though 2027
• Below market rents plus natural rent growth allows next buyer to drive rents 22.5% over 3 years
• Value appreciation or HPA is anticipated to grow 15.2% from today through 2028
• Limited capital expenditures for all big-ticket items for years to come
• Less repair and maintenance expenses moving forward given full renovations throughout
• All SVN® Offices Are Independently Owned & Operated
• Local Broker License Information: www.SFRhub.com/realestatelicensing

Description:

Contact:
TOM JOHNSTON
Managing Director | Designated Broker
SVN | SFRhub Marketplace
T: 602.441.5354
C: 602.403.3695
tom.johnston@svn.com
License #: BR507919000


BOR:
SVN | Three Rivers Commercial Advisors
Jason Campagna
Managing Director

This 12 home SFR investment portfolio is as turn-key as you are going to find, with stable cash flow and value add rents to market rates, making this a seamless investment opportunity for those seeking immediate deployment needs without the after close headaches. All homes are within miles of each other in West Philadelphia, near public transportation (SEPTA), providing bus, subway, trolley and rail systems. As well as, access to world class educational systems, hospitals, cultural organizations, and tight knit bikeable and walkable neighborhoods. This package is the first of many that the Seller will be looking to deploy over the next 12-18 months, offering an investor looking to scale or build a larger SFR portfolio an opportunity to build a relationship with a Seller looking to dispose of more assets, all with gut renovations remodeled to the same respect and quality in every home. The Seller will dispose of further assets over time, as each batch or portfolio of homes’ yield maintenance runs off, so please inquire within on the larger pipeline of homes that will be available over time.

These 12 homes were all purchased 4-5 years ago, one home at a time, and each home has been fully gutted down to the studs and rebuilt, offering residents quality homes at affordable pricing they can be proud to call home. The next buyer can focus more on revenue growth post-closing, less on capital expenditures or heavy repairs, given the complete remodels done on every home across the portfolio. Each home here has undergone extensive and meticulous gut renovations, including new roofs, new windows, all new mechanicals (plumbing and electrical), recessed lighting, HVAC, kitchens, bathrooms, and flooring. All interiors have been completely torn out and replaced with quality finishes throughout and all the exteriors received either new paint or new siding. There is no better way for an investor looking for stable cash flow, while limiting future repair and maintenance expenses, in a high rent growth market like Philadelphia, to capitalize on an opportunity.

Philadelphia, according to John Burns Real Estate, is one of the top non-core markets for new lease asking rent growth as of February 2025, hitting 5.6% YOY rent rate growth. Year over year home value appreciation during the same period was 4.6% and home price appreciation (HPA) is predicted to rise 15.2% from now through 2028. Philadelphia, of the top 99 markets in the country, currently ranks 20th for rent growth. More importantly, the Philly MSA, ranks 14th out of the top 79 non-core markets for growth across three major indices, including employment growth, rent growth, and home price appreciation. Couple these aforementioned highlights with the current operations running at 100% occupancy, the next investor has serious opportunity to push rents and drive revenue. Current rents are 10.5% below market rents today, offering huge value add upside on renewals or new leases, then consider the 4% average YOY rent growth predicted between now and 2027, according to John Burns, the next investor can ride a rent growth wave of nearly 22%+ over three years on turn-key assets. Very hard to find an opportunity to limit cap ex and minimize repair and maintenance expenses while capturing outsized rent growth simultaneously.


The immediate Philadelphia MSA is a regional leader in education, science, and innovation, and these homes are located near University City, a 2.4 square mile neighborhood that boasts world-class institutions that have catalyzed nearly 80,000 jobs in the fields of medicine, higher education, technology, real estate, and hospitality. University City, is a destination for culture seekers and food lovers, a transportation hub with some of the most bicycle-and pedestrian-friendly streets in the city and is home to some of the most significant development projects and life sciences breakthroughs in the region. With diverse demographics, a blend of housing and rental options, top-notch schools and hospitals, and amenities galore, this market location is one of Greater Philadelphia’s neighborhoods of choice.

The greater center city area is home to $710M of completed construction projects, including nearby University City, is adding 2.5M square feet of mixed-use space to its footprint and skyline. There is a palpable boom in lab space, which now totals more than 3.3M square feet, and in the construction of multi-family housing, with 929 new units recently completed and another 4,200 in development over the next three years. And with over 55,000 people choosing to live within miles of this package of homes, ranging from lifelong residents to young parents to transient students. Residents skew young, educated, and ethnically diverse.

The City continues to focus on livability, boasting fantastic scores for walking, biking, and public transit, earning “Paradise” distinctions in all three categories from Walkscore.com. Continued investments in traffic mitigation, safe biking corridors, a growing network of bike share stations, and new transit routes add to the tapestry of options for traveling within or beyond its borders. Residents and visitors alike, can take advantage of over 100 acres of public space and parks as well as eclectic dining scenes as the MSA continues a path of cultural, economic, commercial and residential growth.