Investing in Philly? Consider Kensington

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FROM TIME TO TIME, people ask me where to invest in Philadelphia real estate. (Sometimes they ask me where to invest in Brooklyn, and I say: “Philadelphia!”)

IMG_2603But within Philly, I say Kensington, particularly the southern section sometimes known as South Kensington, Old Kensington, or even Olde Kensington, a neighborhood just above played-out Northern Liberties (that was the place to invest 10 years ago) and west of hipper-than-ever Fishtown, recent darling of New York Times reporters. I own a two-unit building in South Kensington — two back-to-back trinity houses, left, built in the 1840s as housing for workers in the area’s massive carpet and textile mills. (My house is the one on the right in the photo, with the peeling cornice; there’s a three-story unit in front and another in the rear, reachable via the alley between my building and the one next door.)

Many of the weavers and textile workers immigrated from England in the mid-19th century, when the area was known as “Little England.” When I bought the house in 2007 for $137,000, the surrounding blocks were really dilapidated — some of the houses, like the ones in the group below, were literally sagging. They’ve since been renovated, and their rooflines are more or less parallel to the horizon.

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There were — and still are — vacant lots and hulking mill buildings all over the nabe, like the two below, both within a block of my building. It all looked ripe for adaptive reuse, especially large-scale residential conversion, but not much was happening.

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The building above, on 2nd Street and Cecil B. Moore, still looks undeveloped.

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At Palethorp and Cecil B. Moore, above, this old industrial building appears inhabited.

That was only six years ago, and now it’s happening in a big, big way. Around the corner from my building, Oxford Mills, below, is well on its way to becoming 141 rental lofts, with an innovative program of reduced rents for public-school teachers, and amenities such as gym, lounge, etc.; and a mixed-use mega-development called Soko Lofts is on its way. There are many other projects of the same ilk: you can find posts about some of the activity here on Curbed Philly.

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Across the street from my little building, where once was a vacant lot, a new residential building, below, is going up. It’s of a type often seen in Philadelphia but never in New York. It’s too low-density, I suppose — only four stories high, with box windows and terraces and modernistic use of color. I don’t love the look — these buildings seem insubstantial to me, used to brick and brownstone as I am — but I do find it exciting that the neighborhood is roaring with development.

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That’s the 1840s St. Michael’s church in the background, above, the view of which, along with some sunlight, we are sadly about to lose.

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The building above, on Second Street, is typical of new Philly architectural design.

South Kensington’s main artery is Frankford Avenue, shared with Fishtown and  quickly becoming lined with bars and restaurants, including a couple of high-profile ones owned by celebrity restauranteur Steve Starr (Fette Sau, an upscale BBQ place, and Frankford Hall, a beer garden) and the new Philadelphia-based La Colombe coffee roasting complex, distillery and cafe.  Each time I visit, there’s more.

It’s spreading, it’s growing, it’s crazy affordable compared to New York City. And it’s a short bike ride to Center City, whose skyline is visible from most parts of the neighborhood.

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Priced out of Bushwick, Brooklynites? Think Kensington.

Antique Corner House, NoLibs (Philly) 309K

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IN PHILADELPHIA LAST WEEKEND, I squeezed in a quick look at a house whose listing I found intriguing for several reasons:

  • It’s in Northern Liberties, a neighborhood full of restaurants, bars, and history with which I’m familiar, and where a lot of young, hip, solvent people want to live. Hence: easy rental territory.
  • It’s a corner building, at the end of a row, which means three exposures instead of just two.
  • It’s old, and you know my philosophy: the older the better. I could tell from the roofline — an inverted V, with steep sides peaking in the middle and two dormer windows at front and back — that it was c.1800 Federal style, which is entirely possible in that nabe.

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Living room and one of two bedrooms in the upper duplex, above

The ask had been 329K; it recently came down to 309K. It’s a two-family — a 1BR ground floor apartment, presently renting month-to-month for $700, and a 2BR duplex above for $1,100, with a lease ending next April.

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Kitchen in the duplex, above

However, I decided against pursuing it, despite its income potential and a few undeniable charms (exposed-beam ceiling in the upper duplex, cozy attic bedrooms, sunny hippie-style bath, pleasant roof deck, below).

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It’s on the fringe of Northern Liberties — diagonally across from Liberties Lofts, a converted warehouse-turned-rental building, but also directly across from some depressingly ill-maintained modern row homes. It also needs more work and money than I’m prepared to put in right now.

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But it is an opportunity for the right someone. With the two current rentals totaling $1,800, and room to go quickly higher with some fixing up — plus a rentable off-street parking space, above — it would be possible to break even or better right out of the gate.

If you’re interested, give Ken Krauter of Zip Realty a call (215/450-0605).

Heart of NoLibs 2-Family 329K

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Northern Liberties street scene

283847941NoLibs? WTF is NoLibs? You might well ask. It’s a silly acronym (is there any other kind?) for Northern Liberties, one of the most happening neighborhoods in Philadelphia. Think of it as the Williamsburg of Philly — established enough to be a secure real estate investment, yet still with development potential aplenty.

Just north of Center City — an easy walk or bike ride — the neighborhood is old and historic, with 3-and 4-story row houses in a variety of styles. It dates back to William Penn’s 1680 plan for the city, when the area was carved up into 80-acre plots (“liberty lands”) to be given away as incentive to those who bought 5,000-acre parcels elsewhere in the colony of Pennsylvania.

I own two buildings in Philly and covet more. When I get listings emailed to me, I look at them. Usually I’m not moved to act, or even blog. But this one, left, is a corner building in a prime spot and apparently decent shape. The ask (down recently from 350K) is in line with current market conditions, and the possibility of renting both units and being immediately in the black makes it seem worth a closer look.

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data=Ay5GWBeob_WIPLDYoIWcfVXxvZu9XwJ55OX7Ag,vdn7d-fpjAqTDBft27wBVuuLm3uD_HXVRyJO3BEEF8EgwOeamOmJ187hWjVKu-p76vUhawZrKt4vPrhjn_1RMOJ3_WaZVFqIFcrFmF0_There are two apartments: a 700-square-foot one-bedroom on the ground floor, with outdoor space in back, and an upper duplex with a loft-like living space, above, two attic bedrooms, and a deck.

It’s clear that a cardinal rule of real estate sales has been broken here: the listing photos suck. Bad for the seller; not necessarily so for prospective buyers. I’ll be down in Philly next weekend and will take a few of my own. In the meantime, for more lousy-but-better-than-nothing images, go here.

And for an appointment to view this or other Philadelphia properties, I can wholeheartedly recommend Ken Krauter, the broker I used when I bought my house in Old Kensington, one neighborhood over, in 2007: ken.krauter@ziprealty.com, 215/450-0605.

High-End Philly Salvage

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I WAS DOWN IN PHILADELPHIA Sunday, helping my son and his girlfriend tear up floorboards at the 1870s Fishtown row house they bought last June. But first, by way of procrastination, we had to have breakfast and check out the new digs of an architectural salvage company in Northern Liberties called Provenance.

The place is ginormous and most impressive. There’s lots here for fans of the trendy Steampunk/early industrial aesthetic. They have numerous antique flooring options, from maple strips salvaged from a bowling alley to cypress “sink lumber,” i.e. logs that fell off the barge at a bend in the river, and were submerged for years before being brought to the surface and resuscitated, ready for use.

My only disappointment is that prices seem on a par with New York’s. So no bargains for making the trip, but plenty of intriguing inventory.

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Vintage pedestal sinks, about $400.

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Tall turn-of-the-century corner cupboard in great condition, $800.

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I Get Around

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Fine row of 19th century storefronts, Northern Liberties, Philadelphia

I’VE BEEN MOVING AROUND SO MUCH LATELY, my head is spinning. Hence the random assortment of images in this post.

A few days after moving into my new apartment in Prospect Heights, Brooklyn, I took off for a week in Maui. I was back in New York all of two days before heading down to Philadelphia to meet a new tenant and a painter.

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Federal-era corner building in Northern Liberties, Philly, now a popular brewpub

Got to hang out in Brooklyn another couple of days…

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Flatbush Avenue’s own Flatiron building, near Bergen Street

where I did much of my Thanksgiving food shopping at Damascus Bakery on Atlantic Avenue it Brooklyn Heights. It has become a full-service Middle Eastern grocery in recent years. I went there primarily because Sahadi’s, the old standby, was mobbed, but I’ve since decided I much prefer the offerings (below) from Damascus anyway — all tops.

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Meanwhile, Sahadi’s opened a pop-up holiday gift store, below, on the same block, for those food gifts (pistachios, dried fruit, candies, sticky baklava…) everyone likes.

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Then I high-tailed it to Ancram, N.Y., in Columbia County, for a high-spirited Thanksgiving weekend with cousins.

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Impeccable three-story eyebrow colonial, Ancram

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Quintessential Hudson Valley dairy barn, late 18th c.

Hope you all spent a satisfying Thanksgiving with people you love.