Help! No one will rent or buy Temple U student rental!

[Christian Paluzzi]

I own a student rental duplex a couple of blocks north of Temple University's main campus in North Philly which was hit hard by covid and is still struggling.  Up until early 2020, we had been fully rented with student groups at market rates, but once the school shut down for the pandemic and the area went downhill we have been unable to rent it to any groups (student or qualified non-student groups) even at steep rent discounts - it does not help that there have been multiple carjackings and a murder on our street during lockdown.  The property was built nearly ten years ago and has a tax abatement that is about to expire this december, and we tried to exit at a loss over the last year or so but have not gotten a single offer (even low ball) after listing several times at decreasing prices.  We recently got in touch with a recovery home operator who was interested in the Philadelphia market and were close to signing a lease for the company to operate out of our building, but the company has encountered issues with the city and has extended their pre-lease timeline indefinitely.  We looked into potentially airbnb'ing as a long shot, but the local rates and reservation frequency is extremely low.  We had a strong cash flowing asset until the unpredictable happened and now we are stuck with a major anchor in our portfolio.  Does anyone have any advice on how to improve this very bad situation?

[David Lee Hall, III]

Quote from @Christian Paluzzi:

I own a student rental duplex a couple of blocks north of Temple University's main campus in North Philly which was hit hard by covid and is still struggling.  Up until early 2020, we had been fully rented with student groups at market rates, but once the school shut down for the pandemic and the area went downhill we have been unable to rent it to any groups (student or qualified non-student groups) even at steep rent discounts - it does not help that there have been multiple carjackings and a murder on our street during lockdown.  The property was built nearly ten years ago and has a tax abatement that is about to expire this december, and we tried to exit at a loss over the last year or so but have not gotten a single offer (even low ball) after listing several times at decreasing prices.  We recently got in touch with a recovery home operator who was interested in the Philadelphia market and were close to signing a lease for the company to operate out of our building, but the company has encountered issues with the city and has extended their pre-lease timeline indefinitely.  We looked into potentially airbnb'ing as a long shot, but the local rates and reservation frequency is extremely low.  We had a strong cash flowing asset until the unpredictable happened and now we are stuck with a major anchor in our portfolio.  Does anyone have any advice on how to improve this very bad situation?

Would you consider seller financing? Could be a win-win. You recoup some loses long term and help someone out with attractive non-banked terms.