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Dalzell Capital Partners Adds Four Center City Properties to Its Growing Philadelphia Portfolio
Portfolio Acquisition Follows Firm’s $21 Million Purchase of Waverly Court on June 28, 2018

WESTPORT, Conn.--(BUSINESS WIRE)--Dalzell Capital Partners LLC (“Dalzell Capital”), a real estate investment and management firm, today announced that it acquired a four-property multifamily portfolio located in Center City, Philadelphia for $18.7 million (the “Portfolio”). The Portfolio was purchased from Philadelphia-based commercial real estate developer Alterra Property Group.

“Dalzell Capital’s continued...

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Dalzell Capital Partners Adds Four Center City Properties to Its Growing Philadelphia Portfolio
Portfolio Acquisition Follows Firm’s $21 Million Purchase of Waverly Court on June 28, 2018

WESTPORT, Conn.--(BUSINESS WIRE)--Dalzell Capital Partners LLC (“Dalzell Capital”), a real estate investment and management firm, today announced that it acquired a four-property multifamily portfolio located in Center City, Philadelphia for $18.7 million (the “Portfolio”). The Portfolio was purchased from Philadelphia-based commercial real estate developer Alterra Property Group.

“Dalzell Capital’s continued investment in Center City demonstrates our positive long-term outlook on Philadelphia, which is enjoying an accelerating economic expansion” - Tweet this

“Dalzell Capital’s continued investment in Center City demonstrates our positive long-term outlook on Philadelphia, which is enjoying an accelerating economic expansion,” said Christian Dalzell, Dalzell Capital’s Managing Partner. “The rare opportunity to expand our footprint across Center City through the acquisition of four outstanding properties at an attractive valuation is something we are extremely excited about.”

The luxury portfolio consists of four newly built or recently gut-renovated properties aggregating 65 units that offer Dalzell Capital the opportunity to create incremental value through operational and capital improvements. With an average Walk Score of 99, the Portfolio will benefit from its proximity to almost 400,000 jobs in Center City and University City, Philadelphia’s extensive local, regional and national transportation network, and significant complementary commercial property development activity. The Portfolio is comprised of the following assets:

• The Bradford – Located at 507 South 8th Street between Lombard and South Streets, The Bradford was delivered in 2017 and quickly leased up to full occupancy. The 26-unit property offers high-end materials, premium appliances and fixtures including Nest in all units, covered parking, a green roof, an enclosed dog run, and an outdoor tenant lounge with community BBQ.

• Queen Village Lofts – Located at 427 Monroe Street, approximately four years ago, the property was gut renovated and converted from a school into a 16-unit, high-end contemporary multifamily property that features beautiful millwork, modern kitchens and bathrooms, secure access, washer and dryers in each unit, secure parking, and a rooftop deck with 360 degree views of Philadelphia. Queen Village Lofts sits one street south of Bainbridge Green and directly across the street from the Elizabeth Elementary School, which is considered one of the best public elementary schools in Philadelphia.

• 1311 Spruce – Located at 1311 Spruce Street, the property was originally built as a law office. In 2013, 1311 Spruce was converted and expanded into the beautiful urban multifamily property that it is today. The property’s 16 one- and two-bedroom units feature modern kitchens and appliances, granite counters, subway tile backsplashes, new bathrooms, washer and dryer in each unit, and hardwood floors throughout the property.

• 1310 Spruce – Located at 1310 Spruce Street (directly across the street from 1311 Spruce), the property was redeveloped in 2014 and includes seven units featuring modern kitchens, appliances and bathrooms. Located on Spruce between Broad and 13th Streets, both 1311 Spruce and 1310 Spruce are great destinations for the urban living experience, with restaurants, theaters, galleries and boutiques all within walking distance.

The portfolio transaction advances Dalzell Capital’s strategy of acquiring assets in fundamentally strong and densely populated urban markets that have the potential to deliver stable cash flows and outsized value-add returns. It also gives Dalzell Capital increased scale in Center City, the largest job center in the Philadelphia MSA due to its large concentration of employers in the education, health and life science industries. With 71 percent of Core Center City residents having a bachelor’s degree or higher, national and local businesses are capitalizing on the area’s educated, skilled workforce.1

On June 27th, 2018, Dalzell Capital acquired Waverly Court, a 62-unit mixed-use property located in Center City that features 61 loft-style apartments and a 2,800 square feet commercial unit leased to Amis Trattoria, for $21 million. As a result of the acquisition of the Portfolio, over the past 12 months Dalzell Capital has assembled a portfolio of seven high-quality mixed-use and multifamily properties totaling 192 units and 8,500 square feet of commercial space. All properties are tightly clustered in Center City, and are poised to benefit from the area’s continued economic expansion. Having deployed approximately $65 million in Center City since August 10, 2017, Dalzell Capital expects to continue to pursue additional value-add and opportunistic transactions in targeted submarkets across Center City and University City.

About Dalzell Capital Partners LLC

Led by real estate industry veteran Christian Dalzell, Dalzell Capital Partners LLC is a privately-owned investment and management firm formed in late 2016. Since its founding, Dalzell Capital has completed 12 investments – nine controlling and three non-controlling investments – totaling approximately $195 million in gross value. Mr. Dalzell, formerly a senior executive with Starwood Capital Group Global, L.P., Eastdil Secured and Banc of America Securities LLC, has extensive commercial real estate, private equity and investment banking experience. During his 22-year career, Mr. Dalzell has closed more than 500 transactions globally, aggregating more than $62 billion as a lender, intermediary and investor. Dalzell Capital Partners is headquartered in Westport, Conn.

1 Center Philadelphia Development Corporation, 2018 State of Center City Philadelphia report https://centercityphila.org/uploads/attachments/cjh25azq7002ollqdi58lpuer-socc-2018-final-web.pdf

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Connecticut firm Dalzell buys four more Philly apartment buildings

Real estate investment firm Dalzell Capital Partners LLC of Westport, Conn., has acquired four central Philadelphia rental properties, including the apartments built at the former Society Hill Playhouse site, for $18.7 million from locally based developer Alterra Property Group.

The properties, comprising 65 units, consist of the Bradford apartments at the former playhouse site on South Eighth Street, between South and Lombard Streets; Queen Village Lofts, in a former school building on Monroe Street, near Fifth Street; and...

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Connecticut firm Dalzell buys four more Philly apartment buildings

Real estate investment firm Dalzell Capital Partners LLC of Westport, Conn., has acquired four central Philadelphia rental properties, including the apartments built at the former Society Hill Playhouse site, for $18.7 million from locally based developer Alterra Property Group.

The properties, comprising 65 units, consist of the Bradford apartments at the former playhouse site on South Eighth Street, between South and Lombard Streets; Queen Village Lofts, in a former school building on Monroe Street, near Fifth Street; and two converted townhouses on Spruce Street between 13th and Juniper Streets, Dalzell said in a release on Monday.

The buildings add to the firm's rapidly growing portfolio of Philadelphia rental buildings that it began assembling about one year ago. It now owns seven properties totaling 192 units and 8,500 square feet of commercial space citywide, it said in the release.

Other recent acquisitions include its $21 million purchase in June of the 62-unit Waverly Court apartment building on 13th Street between Pine and Ludlow Streets, which has the Amis Trattoria Italian restaurant as a ground-floor tenant.

http://www2.philly.com/philly/business/real_estate/commercial/society-hill-playhouse-apartment-dalzell-connecticut-alterra-20180820.html

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Connecticut Buyer Snapping Up Midsize Center City Multifamily Properties

July 23, 2018 | Matthew Rothstein, Bisnow Philadelphia

Connecticut-based Dalzell Capital Partners is beginning to make serious inroads into the Philadelphia multifamily market.

The firm, headed by Managing Member Christian Dalzell, closed on the $21M purchase of Waverly Court — a 61-unit development at 13th and Waverly streets — at the end of June. That follows on the heels of Dalzell's first two acquisitions in Philly, both within the last year. Overall, Dalzell has acquired five properties, with the other two in...

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Connecticut Buyer Snapping Up Midsize Center City Multifamily Properties

July 23, 2018 | Matthew Rothstein, Bisnow Philadelphia

Connecticut-based Dalzell Capital Partners is beginning to make serious inroads into the Philadelphia multifamily market.

The firm, headed by Managing Member Christian Dalzell, closed on the $21M purchase of Waverly Court — a 61-unit development at 13th and Waverly streets — at the end of June. That follows on the heels of Dalzell's first two acquisitions in Philly, both within the last year. Overall, Dalzell has acquired five properties, with the other two in Connecticut.

Three blocks away from Waverly Court is 1430 South St., a 35-unit apartment building that Dalzell purchased for $10.8M in August. In December, Dalzell added the 33-unit 514 South St. in Queen Village for $10.4M. All three acquisitions have small retail presences on the ground floor.

Dalzell Capital Partners has used Freddie Mac to finance all three acquisitions, which are about 70% leveraged. It has tapped Ori Feibush's OCF Realty to manage the properties.

Dalzell's acquisitions have gone against the grain of the most popular investment trend in multifamily over the past year or so, which has been in suburban, value-add properties. Both 1430 and 514 South are new construction that Dalzell purchased off-market, and Waverly Court is a mixture of 34 new apartments and 27 that were originally built in the early 1900s.

Dalzell is renovating those units, but he said they still stand in contrast to the 1970s-era garden apartments that have been targeted most. So far, he believes the South Street corridor and Queen Village have the right mix of population density and a high barrier to entry to justify buying new and holding.

“Since you have much more concentrated employment and population south of Market, and because the city has recently changed the maximum density for zoning east of Broad to promote development, a lot of the new properties that have come online in the last six years have done so on very large commercial lots,” Dalzell said. "The city is running out of developable spaces, and it has a much greater barrier to entry south of Market, rather than north of Market, which was historically more industrial.“

After a few years spent researching the market, Dalzell chose this time to pounce because the multifamily development cycle appears to be ending. The supply pipeline is expected to dry up in 2019, and what has already delivered is absorbing slowly.

“The development that has come online has created competition, but what is about to come online will be more job-creating developments as mostly non-residential [projects]," Dalzell said. "I don’t think that housing need has really been baked into the numbers, which has motivated us to identify more investment opportunities.”

Dalzell said he would ideally like to close on two or three more properties before the year is out, then "take a breather" unless a surprising deal pops up. But he hopes to continue buying in the city over the long run, and is searching for office space to be closer to the majority of his portfolio.

“I think we’re close to needing an office in Philadelphia, and my goal is to give ourselves a reason to open an office,” Dalzell said.

See Also: Universal Design’s Multigenerational, Multifamily Appeal

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Former Starwood Exec Christian Dalzell Pursues Small Apartment Properties on East Coast

Commercial Real Estate Direct Staff Report

Christian Dalzell, a 22-year commercial real estate industry veteran and former head of lending at Starwood Capital Group, has formed an investment firm to pursue small apartment properties along the East Coast, particularly in Philadelphia.

His company, Dalzell Capital Partners, which is headquartered in Westport, Conn., acquired its largest property last week, paying $21 million, or $344,262/unit, for the 61-unit Waverly Court building at 412 South 13th St. in...

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Former Starwood Exec Christian Dalzell Pursues Small Apartment Properties on East Coast

Commercial Real Estate Direct Staff Report

Christian Dalzell, a 22-year commercial real estate industry veteran and former head of lending at Starwood Capital Group, has formed an investment firm to pursue small apartment properties along the East Coast, particularly in Philadelphia.

His company, Dalzell Capital Partners, which is headquartered in Westport, Conn., acquired its largest property last week, paying $21 million, or $344,262/unit, for the 61-unit Waverly Court building at 412 South 13th St. in Philadelphia. The property includes 2,800 square feet of ground-floor retail space that is fully leased to the Amis Trattoria Italian restaurant.

The acquisition brought the company's portfolio to five properties with 208 units in Connecticut and Philadelphia. It also has a stake in three properties with 1,132 units in North Carolina that are owned primarily by Ginkgo Residential.

Dalzell launched the company last year after taking several months off following his departure from Starwood, where he had been a partner and member of the company's investment committee. He also was head of lending for the firm as well as its affiliated REIT, Starwood Property Trust. He had joined the investment manager in 2010 from Eastdil Secured, where he ran its capital markets group.

Dalzell had been involved with numerous multifamily deals while with Starwood and decided to focus on the sector when he ventured out on his own. He capitalizes investments through a network of friends, family members and high net-worth individuals and generally lines up mortgages totaling 70 percent of properties' value from local banks or the housing-finance agencies.

Dalzell Capital made its first investment in April 2017 when a venture it formed with Legacy Investing LLC of Arlington, Va., paid $23.65 million for two apartment complexes in Connecticut: the 24-unit Belden Square at 747 Belden Ave. in Norwalk, which also has 11,675 sf of medical-office space leased to the Yale New Haven Hospital, and the 55-unit Addison Mill Apartments in Glastonbury.

The company is now particularly focused on expanding its presence in downtown Philadelphia. It bought its first two properties in the city last year, paying $10.8 million for the 35-unit building at 1430 South St. and $9.35 million for the 33-unit building at 514 South St., both are in residential neighborhoods just outside of Center City Philadelphia, the city's main business district, putting them near a number of restaurants, bars and retail outlets. The company is targeting other buildings in the area.

"For us, it's very important to be in the heart of things, in the middle of the city," Dalzell said. "That is the most defensive measure any buyer can make when acquiring a new asset."

Dalzell Capital targets properties that have been constructed or re-developed within the past few years, but do not offer as many amenities as large buildings. For instance, units at 514 and 1430 South have many of the same modern and upscale finishes as those at larger properties. But they lack some of the amenities their larger brethren might have, like swimming pools, fitness centers and clubhouses. As a result, units rent for lower prices, making them a first choice among many renters. That, Dalzell believes, would allow them to weather any potential economic downturn better than more expensive properties.

"Even in more challenging markets, because we're not pushing the envelope in our rents, I think we're going to see more consistent operations," Dalzell said.

Dalzell noted that a few office and mixed-use buildings have been constructed or are under development and companies are opening offices in and around Philadelphia, which could lead to more demand for apartment properties that are close to work and entertainment options.

The Children's Hospital of Philadelphia opened a 466,000-sf building at 646 Schuylkill Ave. last May and expects to construct three more buildings nearby with an additional 1.5 million sf. In addition, Liberty Property Trust is developing the Comcast Technology Center, a 60-story office building with a 217-room Four Seasons hotel at 18th and Arch streets.

Meanwhile, a venture of Pennsylvania REIT and Macerich is re-developing the former Gallery at Market East, which it has renamed Fashion District Philadelphia and will open later this year. It will have 838,000 sf of dining, shopping and entertainment space along three blocks next to the Reading Terminal Market and Philadelphia Convention Center.

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Dalzell Capital Closes on $21M Acquisition of Philly Mixed-Use Property – Commercial Observer

Cathy CunninghamJune 28, 2018 11:25 am
Dalzell Capital Partners has closed on the $21 million acquisition of Waverly Court, a mixed-use property located in Center City, Philadelphia, Commercial Observer has learned.

SEE ALSO: NKF Seals $355M Refi for Philly Office Trio

The Connecticut-based real estate investment firm—led by Starwood Capital’s former global head of capital markets, Christian Dalzell—acquired the asset from Yess Properties’ Dovid Doniel, assuming an Investors Bank loan on the property...

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Dalzell Capital Closes on $21M Acquisition of Philly Mixed-Use Property – Commercial Observer

Cathy CunninghamJune 28, 2018 11:25 am
Dalzell Capital Partners has closed on the $21 million acquisition of Waverly Court, a mixed-use property located in Center City, Philadelphia, Commercial Observer has learned.

SEE ALSO: NKF Seals $355M Refi for Philly Office Trio

The Connecticut-based real estate investment firm—led by Starwood Capital’s former global head of capital markets, Christian Dalzell—acquired the asset from Yess Properties’ Dovid Doniel, assuming an Investors Bank loan on the property in the process. The loan assumption represented the acquisition financing, Dalzell told CO.

The transaction marks the Dalzell’s third City Center acquisition in the past year. The firm also purchased 1430 South Street, a 35-unit mixed-use property, for $10.8 million in August 2017, and 514 South Street, a 33-unit mixed-use property, for $10.35 million in December 2017.

“There’s a great combination of institutional and high-net-worth capital coming into Philadelphia,” Dalzell said. “We’re seeing a number of sophisticated owners and investors partnering to transact, so there’s constant growth in the area.”

Waverly Court—erected in the early 1900s and located at 412-426 South 13th Street—features 61 loft-style apartments and 2,800 square feet of commercial space leased to Amis Trattoria restaurant. Thirty-four of the property’s residences were delivered in July 2017 and the original 27 units have been fully renovated.

“Waverly Court represents the latest step in expanding our presence in Center City and advances our investment strategy of acquiring properties that have the ability to deliver long-term, stable cash flows and outsized value-add returns,” Dalzell said. “We believe the strengthening Philadelphia job market and accelerating household growth, combined with our differentiated product and service-oriented offering will generate consistently high occupancies, sticky tenancy and above average rent growth.”

Including Waverly Court, Dalzell Capital owns and manages five multifamily and mixed-use properties located in Philly and Connecticut. The company also completed value-add acquisitions of partial interests in three properties located in the Piedmont Triad region of North Carolina. The aggregate gross value of Dalzell Capital’s portfolio today is roughly $175 million.

“Our goal is simple – we want our properties to set the standard for service, quality and elegance in their respective markets,” Dalzell said. “With that as our primary tenet, we will continue to grow the portfolio prudently in specifically targeted markets that exhibit above average employment and household growth, and community investment.”

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Connecticut firm Dalzell makes second Philadelphia apartment buy

Connecticut firm Dalzell makes second Philadelphia apartment buy Updated:FEBRUARY 5, 2018 — 4:51 PM EST Real estate investment firm Dalzell Capital Partners LLC of Westport, Conn., has made its second Philadelphia acquisition: a newly completed 32-unit apartment building at 514 South St. Dalzell purchased the five-story building residential building with ground-floor retail space for $9.35 million on Dec. 19, according to records filed with the city. In August, it paid $10.8 million for another newly constructed apartment building, a 34-unit project at 1430 South St. Dalzell managing partner Christian Dalzell said in an email Monday that the Queen Village and Graduate Hospital areas in which those properties are located are attractive places for such investments because of the difficulty in assembling land in the rowhouse neighborhoods for new apartment supply. “Both assets are very well located in extremely dense locations where future growth is limited by tremendous physical and structural barriers to entry,” he said.

Real Estate Finance & Investment -
http://realestatefinanceinvestment.com - Class A Philadelphia apartments sold

WALL STREET JOURNAL
Dalzell Capital in Deal to Buy Two Apartment Complexes in Connecticut

Jay Rappaport and Daniel English from Legacy Investing also involved in the $23.65 million acquisition

By Keiko Morris
April 16, 2017 8:04 a.m. ET
Dalzell Capital Partners LLC joined forces with Jay Rappaport and Daniel English from Legacy Investing LLC to buy a 55-unit apartment complex that once was a textile mill in Glastonbury, Conn., and a 24-unit rental complex in Norwalk, said Christian...

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Real Estate Finance & Investment -
http://realestatefinanceinvestment.com - Class A Philadelphia apartments sold

WALL STREET JOURNAL
Dalzell Capital in Deal to Buy Two Apartment Complexes in Connecticut

Jay Rappaport and Daniel English from Legacy Investing also involved in the $23.65 million acquisition

By Keiko Morris
April 16, 2017 8:04 a.m. ET
Dalzell Capital Partners LLC joined forces with Jay Rappaport and Daniel English from Legacy Investing LLC to buy a 55-unit apartment complex that once was a textile mill in Glastonbury, Conn., and a 24-unit rental complex in Norwalk, said Christian Dalzell, managing partner of Dalzell Capital.
The acquisition prices of the two properties totaled $23.65 million.
“We want to create a portfolio of luxury rentals,” Mr. Dalzell said. “Our goal is to raise more institutional funds and act more decisively and quickly on bigger assets.”
The investors tapped furniture and interior design firm Lillian August Designs Inc., which will work on design concepts and improvements to reposition the property, said Dan Weiss, chief executive of Lillian August. The firm also will offer its interior-design services and products to tenants, Mr. Weiss said.
The new owners secured almost $19 million in financing from Freddie Mac, Mr. Dalzell said.
The apartments in the repurposed textile mill in Glastonbury will be called Addison Mill, Residences by Lillian August. Built around 1860, the building features an original brick façade, exposed timber beams and balconies overlooking a pond and waterfall. The property was sold by investors including Hunt Companies Inc. and developer Martin Kenny for $11.75 million, Mr. Dalzell said. Victor Nolletti, a senior managing director at Institutional Property Advisors, a division of Marcus & Millichap Inc., represented the sellers in the transaction.
The Norwalk property, Belden Square, also will be branded as Residences by Lillian August. Belden Square consists of two buildings with 24 newly constructed apartments and has a pediatric specialty care center as a long-term tenant. SG Belden LLC sold the Belden Square property for $11.9 million. Al Mirin, an executive managing director at Cushman & Wakefield, represented the sellers in the deal.
Write to Keiko Morris at Keiko.Morris@wsj.com
https://www.wsj.com/articles/dalzell-capital-in-deal-to-buy-two-apartment-complexes-in-connecticut-1492344295

Conn.-based investor pays $10.8M for South Street apartments

Updated: August 15, 2017 — 9:47 AM EDT

http://www.philly.com/philly/business/real_estate/commercial/dalzell-capital-partners-connecticut-buys-south-street-apartments-philly-20170815.html?mobi=true


An affiliate of Westport, Conn.-based real estate investment firm Dalzell Capital Partners LLC has paid $10.8 million for 1430 South St., a 34-unit apartment building with ground-floor retail space.

The acquisition is Dalzell’s first in Philadelphia, the company said in a news release Monday. It is teaming with Philadelphia real estate firm OCF Realty, owned by developer Ori Feibush, to manage the property and advise on future acquisitions in the city, it said.


The purchase, from an entity called New South Philly LP, closed on Thursday, Dalzell managing partner Christian Dalzell said in an email. New South Philly is an affiliate of Wendell Family Investments Ltd., which is incorporated in Delaware, according to state records.
Published: August 15, 2017 — 2:06 PM EDT

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Former Virgin Atlantic HQ in Norwalk sells for $11.9M; will rebrand as Residences by Lillian August

westfaironline.com/88342/former-virgin-atlantic-hq-sold-11-9m/


Phil Hall‎4‎/‎18‎/‎2017
Home Fairfield Former Virgin Atlantic HQ in Norwalk sells for $11.9M; will rebrand as...
45,000 square foot two-building medical office/residential apartments complex located in Norwalk.
By Phil Hall


April 18, 2017
Dalzell Capital Partners LLC has acquired the 24-unit Belden Square Apartments in Norwalk for $11.9 million. Founded by former Starwood Capital executive Christian Dalzell, Westport-based DCP in...

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Former Virgin Atlantic HQ in Norwalk sells for $11.9M; will rebrand as Residences by Lillian August

westfaironline.com/88342/former-virgin-atlantic-hq-sold-11-9m/


Phil Hall‎4‎/‎18‎/‎2017
Home Fairfield Former Virgin Atlantic HQ in Norwalk sells for $11.9M; will rebrand as...
45,000 square foot two-building medical office/residential apartments complex located in Norwalk.
By Phil Hall


April 18, 2017
Dalzell Capital Partners LLC has acquired the 24-unit Belden Square Apartments in Norwalk for $11.9 million. Founded by former Starwood Capital executive Christian Dalzell, Westport-based DCP in partnership with Jay Rappaport and Daniel English of Arlington, Virginia’s Legacy Investing LLC also acquired Addison Mill Apartments in Glastonbury.


Cushman & Wakefield’s Capital Markets Group arranged the sale of Belden Square, at 747 Belden Ave. The former U.S. corporate headquarters of Virgin Atlantic, it was repositioned in 2016 as a 45,000-square-foot, two-building medical office and apartment complex.


The Cushman & Wakefield team of Al Mirin, Kate Schwartz, Matthew Torrance, and Kathleen Fazio represented sellers Greenfield Partners and Summit Development, while Charlie Haggard of Berkeley Point Capital represented Dalzell and Legacy as he secured acquisition financing from Freddie Mac.


The Norwalk and Glastonbury deals represent Dalzell Capital’s initial foray into the creation of a branded apartment platform with Dan Weiss, CEO of furniture and interior design company Lillian August. Belden and Addison, which were both repurposed for residential use, will be rebranded as Residences by Lillian August.
Dalzell and Legacy plan to upgrade each property with various capital projects to improve the common areas and apartments.

Improvements to the two buildings that make up Belden Square, Residences by Lillian August will total approximately $21,000 per unit.
Belden also houses a pediatric specialty care center on a long-term lease to Yale-New Haven Hospital Inc.


https://westfaironline.com/88342/former-virgin-atlantic-hq-sold-11-9m/

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Dalzell Capital

http://rew-online.com/2017/04/26/kushner-cbre-dalzell-delta/

Investor launches apartment platform
Dalzell Capital has formed a joint venture with Legacy Investing in a $24 million deal to acquire two luxury residential properties.
Dalzell, founded by former Starwood Capital executive Christian Dalzell, partnered Legacyʼs Jay Rappaport and Daniel English paying $11.9 million for Belden Square in Norwalk, CT, and $11.75 million for Addison Mill.
The properties will be upgraded and rebranded as Residences by Lillian August as part of Dalzell Capital’s initial foray into a branded...

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Dalzell Capital

http://rew-online.com/2017/04/26/kushner-cbre-dalzell-delta/

Investor launches apartment platform
Dalzell Capital has formed a joint venture with Legacy Investing in a $24 million deal to acquire two luxury residential properties.
Dalzell, founded by former Starwood Capital executive Christian Dalzell, partnered Legacyʼs Jay Rappaport and Daniel English paying $11.9 million for Belden Square in Norwalk, CT, and $11.75 million for Addison Mill.
The properties will be upgraded and rebranded as Residences by Lillian August as part of Dalzell Capital’s initial foray into a branded apartment platform with Dan Weiss, CEO the Lillian August design firm.


“I am proud to be working with Legacy and Lillian August to launch Residences by Lillian August. Our goals are simple. We want our properties to set the standard for service, quality and elegance in their respective markets, and we want to grow the brand and portfolio prudently in markets with above average employment growth and community investment,” said Dalzell.


Jay Rappaport said the investment matches Legacy’s goal of delivering long-term, stable cash flows.
“It also provides a much larger opportunity to capture the accelerating growth of households transitioning from home-ownership to renting,ˮ he added.


Addison Mill is a 55-unit adaptive re-use of a historic Civil War era textile mill gut renovated eight years ago.


Belden Square consists of two buildings with 24 newly-constructed Class-A apartments. The one-time North American headquarters of Virgin Atlantic, it was repositioned in 2016 by its former owner, Greenfield Partners and Summit Development.


Charlie Haggard, Berkeley Point Capital, represented Dalzell and Legacy as he secured acquisition financing from Freddie Mac.
Al Mirin from Cushman & Wakefield represented Greenfield Partners and Summit Development in the sale of Belden Square. Victor Nolletti from Marcus and Millichap represented the Hunt Companies and Lexington Companies in the sale of Addison Mill Apartments.

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Real Estate Finance & Investment

- http://realestatefinanceinvestment.com -

Dalzell Goes Off-Market for Philadelphia Apartment Deal

Posted By Kaitlyn Mitchell On January 9, 2018 @ 10:11 pm In Developer Strategies,Features,Investor Plays,News,Property Sales
Dalzell Capital Partners has acquired a newly built Class A, 33-multifamily unit property on 514 South Street in Philadelphia in an off-market transaction. The company paid $9.35m, or about $283,333 per unit, to local developer Haffey Homes. The property includes 3,100 square feet of rentable commercial space and six on-site parking spots.

The...

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Real Estate Finance & Investment

- http://realestatefinanceinvestment.com -

Dalzell Goes Off-Market for Philadelphia Apartment Deal

Posted By Kaitlyn Mitchell On January 9, 2018 @ 10:11 pm In Developer Strategies,Features,Investor Plays,News,Property Sales
Dalzell Capital Partners has acquired a newly built Class A, 33-multifamily unit property on 514 South Street in Philadelphia in an off-market transaction. The company paid $9.35m, or about $283,333 per unit, to local developer Haffey Homes. The property includes 3,100 square feet of rentable commercial space and six on-site parking spots.

The asset is in the Queen Village neighborhood in South Philadelphia, which has high barriers to entry and hasn’t seen new construction in about 20 years, said Christian Dalzell, managing partner at Dalzell Capital Partners. “In Philadelphia, things are moving south as residents and future tenants are choosing to live in areas like Graduate Hospital, Queen Village and Bella Vista.”

The price was lower than Dalzell paid for a nearby property at 1430 South Street, which traded for $10.8m or about $308,572 per unit, despite 514 State’s higher quality units. “Right after we acquired 1430, I noticed this new property under construction a half-mile away and I immediately engaged the seller, who always intended to sell 514 South and we were able to negotiate a favorable price,” he added.

The seller began renting the units in mid-November 2017, and it is already 60% leased. “The pace of leasing has been blistering and welcome good fortune, and we are now trying to lease all multifamily units before the end of January,” Dalzell added. Rents at the property, beginning at $1,550 per month, are reflective of the lease up nature of the asset purchase, said Dalzell. By month 15, he expects the rental rare on average to exceed $1,600 to $1,650. The units average 550 square feet in size.

The building has limited amenities, though it is two blocks from the future site of a Trader Joe’s, according to published reports. “For hundreds of years, the neighborhood has been a very active and vibrant part of Philly – it was the first suburb in the U.S.,” said Dalzell. “Less than seven percent of units in the 19147 zip code are at located in buildings with at least 20 units. Since almost 90% of Queen Village is row houses, land assemblage is the single greatest barrier to entry. The only multifamily property currently under construction in Queen Village is comprised of less than 4,000 square feet of commercial space and only seven apartments. 514 South required 3 tracts to assemble the requisite FAR to build the property.”

The property is Dalzell Capital Partners’ fourth acquisition Since April 2017. The building has high-end finishes including energy efficient floor-to-ceiling windows, treated-oak hardwood floors, 1.5 inch granite counter tops and subway tiles in the kitchens, real porcelain tile throughout all bathrooms, and around triple the amount of soundproofing versus any of its comparable apartment properties.

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