PHILADELPHIA, PA — Lucern Capital Partners, a real estate private equity firm headquartered in New Jersey, has sold a two property portfolio in Philadelphia, PA. Lucern Capital Partners acquired the portfolio in an extremely distressed state in 2016 from a strained partnership that had neglected the asset. Upon purchase, significant capital was injected, correcting deferred maintenance and renovating units to market specifications.
“When we purchased the portfolio, the majority of the tenancy at the property was materially delinquent, and the property was in deep disrepair. We moved to re-tenant the property, replacing approximately 75% of the tenant base with higher quality, paying tenants, improving rents while simultaneously reducing delinquency to almost zero. To support a higher quality tenant base, we renovated common areas, units, and dressed up the exterior of the building. We prudently invested, upgrading electric, upgrading heating systems to high-efficiency, and repairing major components of the plant,” said Frank Forte, who leads the firm.