Capano Residential bought Rittenhouse Row Apartments at 1601 Sansom St. from New York-based CSA Real Estate Advisors and planning to spend $2 million in renovations to the 80-unit building.

Capano plans to demolish the building’s entire second floor, currently home to a gym and leasing office. The space will be turned into four additional apartments, a new leasing office, a new fitness center and resident amenity space for coworking and socializing. The renovations are expected to be completed by the end of 2026.

On the northwest corner of 16th and Sansom St., Rittenhouse Row Apartments also houses fast-casual stir fry brand honeygrow and self-pour bar Tapster. The building is two blocks south of an entrance to the Market-Frankford Line and two blocks east of Rittenhouse Square.Since Capano’s acquisition strategy is focused on well-located, stabilized properties, Rittenhouse Row Apartments was a fit for the firm.

“Rittenhouse Row Apartments is located at a bustling established retail corner, and it reflects the type of targeted acquisitions we’re pursuing as we expand our regional footprint,” Capano Residential CEO Louis Capano III said in a statement. “We are focused on unlocking the property’s full potential through thoughtful investment, operational excellence, and a commitment to delivering an elevated residential experience.”

Capano is under agreement to acquire another building in Center City “a few blocks away” from 16th and Sansom, the company said. The firm declined to identify the property.

“Philadelphia offers deep demand drivers and long-term stability,” a company spokesperson said, “and this acquisition allows us to expand our regional footprint with a high-quality property that aligns with our growth objectives.”