Modular Rentals in Philadelphia Draw Strong Interest

 by John Dougherty Costar

A pre-built modular apartment building in Philadelphia’s University City neighborhood has sold for $36 million.

The property at 4125 Chestnut St., known as LVL 4125, was acquired by a New York City-based family investment office. The seller was CRP Builders, also of New York.

The six-story, 141-unit building opened last year and is within walking distance of Drexel University, the University of Pennsylvania and that institution’s medical school and medical center. The fully leased complex was developed by Philadelphia-based Alterra Property Group in partnership with the Carlyle Group institutional investment firm.

Although it’s not dedicated student housing, the property is home to many graduate students, faculty and staff of the nearby schools.

Modular apartments — units that are prefabricated off site and then assembled at the new location — are a small segment of the overall multifamily market.

But they do provide some big advantages: The units assemble quickly, and developers do not have to rely on the vagaries of the local labor market during development.

Sellers conducted 40 tours despite the coronavirus pandemic and received 15 offers.

The property has central air-conditioning, granite countertops, washers and dryers in the units, a fitness center and a roof deck.

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