Post Brothers sells luxury Philadelphia high-rise community Presidential City to KKR and MREG for approximately $357M
JLL Capital Markets represented the seller in the transaction
Philadelphia, Nov. 1, 2022 – JLL Capital Markets today announced the closing of the sale of Presidential City, a 1,015-unit, luxury, high-rise community in Philadelphia, Pennsylvania.
JLL represented the seller, Post Brothers, and helped broker the transaction with the buyers, KKR and Mack Real Estate Group, LLC (MREG). KKR made its investment through KKR Real Estate Select Trust Inc., a continuously offered, registered closed-end fund that thematically invests in high-quality, stabilized, income-oriented commercial real estate equity and debt.
"We look forward to the new owner continuing the careful stewardship of this trophy asset," said Matt Pestronk, President of Post Brothers.
Built in 1950, Presidential City was acquired by Post Brothers in 2012 and subsequently gut-renovated into the Class A+, luxury property it is today. Presidential City is comprised of four apartment buildings, as well as a 41,000-square-foot amenity center (Sora Pool Club and Spa) and a well-leased office building (Monroe). Mack Property Management, L.P., a wholly-owned subsidiary of MREG, will handle property operations. The residential buildings each contain their own unique finish package and consist of studio to three- bedroom floor plans up to 2,920 square feet.
The JLL Multi-Housing Capital Markets Investment Sales and Advisory team that represented the seller was led by Senior Managing Directors Mark Thomson and Carl Fiebig, Senior Director Fran Coyne, Senior Managing Director Jose Cruz and Director Tyler Margraf.
Coyne added, “Post Brothers continues to be at the forefront of game-changing multi-housing projects in Philadelphia with notable projects, including Piazza Alta in Northern Liberties and their project at Broad and Washington, where they will be delivering a combined 2,500 units. We look forward to seeing their continued success as they bring their world class product into other markets throughout the U.S.”
Thomson added, “In today’s turbulent market, KKR and MREG performed exactly as promised and were reliable counterparties from start to finish. In a time when selecting the right buyer the first time is critical to reaching the closing table, Post Brothers was extremely pleased with the buyers’ execution.”
JLL Capital Markets is a full-service global provider of capital solutions for real estate investors and occupiers. The firm's in-depth local market and global investor knowledge delivers the best-in-class solutions for clients — whether investment and sales advisory, debt advisory, equity advisory or a recapitalization. The firm has more than 3,000 Capital Markets specialists worldwide with offices in nearly 50 countries.
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JLL (NYSE: JLL) is a leading professional services firm that specializes in real estate and investment management. JLL shapes the future of real estate for a better world by using the most advanced technology to create rewarding opportunities, amazing spaces and sustainable real estate solutions for our clients, our people and our communities. JLL is a Fortune 500 company with annual revenue of $19.4 billion, operations in over 80 countries and a global workforce of more than 102,000 as of June 30, 2022. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. For further information, visit jll.com.
About Post Brothers
Founded in 2006 by brothers Matthew and Michael Pestronk, Post Brothers is a vertically integrated residential real estate company creating innovative, upscale developments that promote culture, community, and well-being. Based in Philadelphia, Post Brothers actively invests in key metropolitan communities throughout the Northeast and has a current portfolio exceeding $1.6 billion plus a $1.3 billion owned development pipeline. The company has developed or acquired more than 30 properties, and upon completion of its current owned development pipeline will have developed over 7,000 apartment units. This includes the largest apartment community in the U.S. to be developed in 2022, Piazza Alta. Post Brothers has a proven track record of recognizing a property’s potential and delivering its vision with meticulous and keen attention to even the smallest details, from responsibly sourced building materials to quality, high-end finishes
About Mack Real Estate Group
Mack Real Estate Group, LLC (MREG), is an enterprise devoted to managing institutional, high net worth, and Mack Family capital by making debt and equity investments in real estate and real estate-related securities through several distinct business lines and legal entities. MREG currently specializes in domestic and international real estate investment, development and financing opportunities with a view toward long term performance and hands on management. The company and its affiliates bring together the expertise to recognize and analyze new real estate investment opportunities with the speed and flexibility necessary to execute on them. For more information, please visit http://mackregroup.com/.
KKR is a leading global investment firm that offers alternative asset management as well as capital markets and insurance solutions. KKR aims to generate attractive investment returns by following a patient and disciplined investment approach, employing world-class people, and supporting growth in its portfolio companies and communities. KKR sponsors investment funds that invest in private equity, credit and real assets and has strategic partners that manage hedge funds. KKR’s insurance subsidiaries offer retirement, life and reinsurance products under the management of Global Atlantic Financial Group. References to KKR’s investments may include the activities of its sponsored funds and insurance subsidiaries. For additional information about KKR & Co. Inc. (NYSE: KKR), please visit KKR’s website at www.kkr.com and on Twitter @KKR_Co.