185-191 E Walnut Ln
Philadelphia, PA 19144
Morelane Garden Apartments · Immeuble residentiel Propriété À vendre · 22 Unités

SCOPE Commercial Real Estate Services, LLC (“SCOPE”) is pleased to present the opportunity to acquire Morelane Gardens, 22-unit multifamily property located at 185 E Walnut Lane in the Germantown neighborhood of Northwest Philadelphia.
The property operates under a long-term Project-Based Section 8 HAP contract with the U.S. Department of Housing and Urban Development (HUD), providing investors with a reliable and fully subsidized rental stream. The contract covers 100 percent of the units and is in place through June 24, 2039, offering 14 years of remaining term. The owner also has preliminary plans in place to subdivide the lot that the property is on. The subdivision would create an adjacent 10,842 square feet of developable land. Based on the R-12 zoning (reclassified as RTA-1 in 2012), the land can be developed into four duplexes (potentially five duplexes with a variance) or 8 total units, however, an abandoned daycare currently sits on the land and would need to be demolished. The land is valued at $200,000.
All 22 units are two-bedroom, one-bathroom layouts, currently receiving contract rents of $1,756 per unit per month, resulting in $38,632 in monthly rental income. Rents are subject to annual increases via HUD’s OCAF (Operating Cost Adjustment Factor), enabling consistent revenue growth aligned with inflation and operating expenses. Rents can also be increased by submitting a budget-based request, which can protect the owner from unforeseen increased expenses that may outpace inflation. The owner received a three percent contract rent increase from $1708 to $1,756 on June 1st, 2025. Tenants pay 30 percent of their income toward rent, with HUD covering the balance. Compliance with annual inspections and reporting requirements ensures continued performance and payment under the agreement.
Morelane Gardens is situated in a stable, walkable section of Germantown—just minutes from La Salle University, Einstein Medical Center, and key neighborhood commercial corridors. The property offers exceptional transit access, with convenient connections to multiple SEPTA bus routes (including the 81, K, 18, 23, 26, H, and XH), nearby Chelten Avenue Regional Rail Station, and Germantown Station on the Chestnut Hill East Line. In addition, the site benefits from proximity to major roadways such as Roosevelt Boulevard, Route 1, and I-76, enabling seamless travel to Center City, the Main Line, and Northeast Philadelphia. This connectivity enhances both resident convenience and long-term leasing stability, reinforcing the asset’s position as a reliable, yield-driven investment in one of Philadelphia’s most enduring rental markets.