CSA Real Estate Advisors and Shimizu Jointly Acquire Apartment for Lease in Philadelphia
― Joint Ownership of Luxury Apartment for Lease in Center City ―
Shimizu Corporation (President: Kazuyuki Inoue) (Shimizu) acquired an apartment building for lease in the city center of Philadelphia through its American subsidiary Shimizu Realty Development (U.S.A.), Inc. (SRD), as a part of Shimizu’s overseas real estate business jointly with a local real estate company, CSA Real Estate Advisors, LLC (CSA). A subsidiary of CSA and SRD established a joint venture which owns and operates the property. Under the investment structure, SRD owns a 97.5% stake.
The property is located near the expanding heart of Philadelphia with office skyscrapers in the vicinity and City Hall within a 5-minute walking distance. Furthermore, shopping and restaurants in the neighborhood are attracting young professionals as a place to live.
The property is a 13-story multi-family building with a total floor area of 8,410 m2, comprised of 80 residential units with office and retail space on the lower floors. The property is almost fully leased and generating a steady income, but with the help of the current favorable market conditions, the rent will further improve with the upgrading of both the common /private areas and services to residents.
Shimizu’s Mid-Term Management Plan (2019-2023) calls for strengthening its real estate development business in North America as part of the overseas expansion of its real estate development business. The real estate development business expanded with the acquisition of the Albano Building, a rental office building in New York City in 2019, followed by the 2020 acquisition of The Shaw in Washington D.C., and the 2022 acquisition of rental office building 535-545 Boylston in Boston. Shimizu will continue to expand its added value investments in the multi-family sector in major cities in the U.S. Shimizu believes that the US real estate market has significant potential due to its stable legal, tax system and market size regardless of recent changes of the market environment such as inflation and rising interest rates.
≪For Reference≫
Property Overview
- Name
- Rittenhouse Row Apartment
- Location
- 1601 Sansom Street, Philadelphia, Pennsylvania, USA
- Building size
- 1 basement floor, 13 floors above ground, floor space 8,410 m2, plot size 668 m2
- Year built
- 1910
- Purpose
- Apartment for lease, offices and retail facilities
Building Exterior
Joint Business Overview
Real estate business subsidiary: Shimizu Realty Development (U.S.A.) Inc.
- Location
- New York State
- President
- Haruhiko Washimi
- Established
- 2018
- Business
- U.S. subsidiary of Shimizu Corporation making added-value investments with a focus on offices and residences in cities, as well as distribution facilities. Manages and operates properties for eventual sale of assets in the medium to long term.
Partner: Capital Security Advisors
- Principal
- Dennis R. Irvin
- Location
- New York State
- Established
- 2011
- Business overview
- Unlisted real estate investment advisory firm that invests and manages assets with a focus on commercial real estate and infrastructure. Provides an advisory service for optimizing real estate portfolios and facilitating real estate transactions.
* The information contained in this news release is the current information on the date of publication. Please be aware that this information may have changed by the time you view it. Please contact the company to inquire for further details.