Carlyle Group part of partnership paying $30M for Center City apartments in historic office building

By April 16, 2019News

Source Article

by Jacob Adelman

Carlyle Group, a Washington private-equity and asset-management giant, has teamed with Philadelphia-based Alterra Property Group to pay $29.7 million for the Commonwealth apartment building in Center City.

The venture bought the 92-unit apartment building in a converted 113-year-old office tower at 12th and Chestnut Streets from Atlanta-based investment manager Invesco Ltd. on March 29, according to records filed with the city.

Invesco had purchased the 15-story building in 2012 from a group involving Alterra that had completed the conversion from offices to apartments.

Alterra managing partner Leo Addimando said Monday that Alterra and Carlyle were able to buy the building back from Invesco for a price similar to what his company had sold it for, despite the appreciation in apartment-property values in the intervening years.

“It was a pretty good opportunity,” said Addimando, whose company also recently acquired sites for apartment development in University City and the historic granary building near the Benjamin Franklin Parkway.

Carlyle’s other area assets have included stakes in the 3737 Chestnut apartment building in University City and the Philadelphia Energy Holdings refinery complex in South Philadelphia.

Invesco was represented in the sale by a team led by senior managing director Mark Thomson at real estate services firm HFF.