Monday, April 24, 2017

Friedman Group Acquires, Renovating Phoenixville Apartment Complex

by Steve Lubetkin,
Breckenridge Plaza, a 92-unit garden apartment community with 48 two-bedroom apartments, 40 one-bedroom apartments and 4 studio apartments located on Nutt Road in Phoenixville, PA, has been acquired by an affiliate of Friedman Realty Group for $8.7 million.

Friedman specializes in revitalizing apartment communities, shopping centers and office buildings.

Major renovations underway on the property will help reposition the property with a new name—Phoenix View Apartments—and Friedman also plans to capitalize on the economic revitalization initiative that has attracted large developers for multifamily, class-A properties in and around Phoenixville.

“The property had all the hallmarks of the type of property we like,” Brian K. Friedman, president of FRG. The property had been overlooked for years by the previous owner.  Rents fell well below the market and vacancies rose to 42 percent. Yet it had terrific bones with a garden setting and brick exterior, providing us with an opportunity to significantly enhance the property’s curb appeal. With 40 years of expertise restoring class-B apartment communities, we will turn Phoenix View Apartments into one of the most sought after multifamily addresses in Phoenixville.”

Exterior improvements include new building entryways and common area designs, gable roof siding replacement, apartment deck and balcony replacements, decorative window shutters plus updated lighting, landscaping and signage.

“The repositioning of the exterior amenities, including the former in-ground pool, is just another fresh start for Phoenix View Apartments,” says Friedman.  The apartments will also benefit from new energy efficient windows and sliding glass doors.

Apartment interiors will receive new plank hardwood flooring throughout the living and dining areas with new carpeting in bedrooms, new kitchens with updated cabinetry, stainless steel appliances (including built-in dishwashers and microwaves), quartz countertops and subway tile backsplashes.  Additionally, the kitchen layouts will be re-designed from their current footprint to provide for a more open and modern look.  Bathrooms will be gutted and everything will be replaced, such as new floor and wall tile with upgraded vanities, light fixtures and plumbing fixtures.  All apartments will also include individual stackable washers and dryers within the unit.

The property’s prior ownership had not invested any capital for major or minor renovations and upgrades, except for adding newer roofs and parking lots, all of which were required by the Borough of Phoenixville to address previous multiple code violations.  Inside the units, everything from the HVAC systems to kitchen cabinets and appliances to the bathrooms were original and in poor condition.  With a deteriorated look, inside and out, the property’s marketability stagnated and suffered, with vacancies rising to 42 percent at the time FRG purchased the property.

“This is a complete gut job,” says David B. Friedman, CPM, owner and vice president of FRG.  “It’s going to be an enormous effort to renovate and restore this property, but this is what we do.  We convert under-managed garden style apartments into modern, contemporary communities with state-of-the-art amenities that can compete with new construction.”

Built around 1970, the property consists of five two-and-a-half-story brick on block buildings with pitched roofs constructed on a three-acre parcel.  The property sits atop of a hill at the busy intersection of Nutt Road and Bridge Street and is within one-half mile from downtown Phoenixville and the township’s Borough Hall.

“The growth of Phoenixville has been tremendous,” says David B. Friedman. “A number of high-profile multifamily projects are coming out of the ground led by developers who have been attracted to Phoenixville’s economic revitalization. The growth shows no signs of waning; renters are exhibiting strong interest in suburban settings with access to downtown shopping and dining destinations.  We believe Phoenix View Apartments fills an important niche in the sub-market by providing beautifully renovated apartments at competitive, affordable rents.”

Phoenix View Apartments is close to major highways such as Route 422, I-76 and provides convenient commuter access to Pennsylvania routes.  Within 10 miles is the King of Prussia Mall, one of the largest retail shopping centers in the country, as well as major regional employers such as The Vanguard Group, GlaxoSmithKline, Pfizer, Dow Chemical Company, and Lockheed Martin.

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