Mid Atlantic Real Estate Journal — Mid Year Review — June 28 - July 11, 2013 — 13A
www.marejournal.com
P hiladelphia -M ultifamily
By Ken Wellar and Corey Lonberger, Rittenhouse Realty Advisors State of the market of multifamily housing in the Philadelphia Region
A
s the United States emerges from the “Re- cession”, so does Phil-
been seeing a definite in- crease of institutional inves- tors coming into the market as well as some very aggres- sive plays by out of town in- vestors, usually from the New York and DC Metropolitan areas.” This is unique to the Phila- delphia multi-family market as we are geographically right between these two markets and thus gain investments from either one. Investors from these other metro areas are starting to look into the Philadelphia market more
than ever, with the expected increase in rents, property values, and available product to invest in. Given the above analysis, we feel Philadelphia and the Northeast corridor will con- tinue to be a thriving multi- family housing market and stable investment for both short and long term inves- tors. Ken Wellar and Corey Lonberger are managing partners at Rittenhouse Realty Advisors in Phila- delphia, PA. n
This, paired with the increas- ing values of these assets, will keep investor demand high, which will continue to strengthen the market. “Something we’re also very excited about when looking at what the future holds for our market is the inflow of new product that will be entering the city within the next few quarters and beyond. Statis- tics show that approximately 2,000 units have been com- pleted in the past 18 months, while about 3,600 are ex- pected to be completed over
the next 18months.” said Ken Wellar, managing partner of Rittenhouse RealtyAdvisors. These new investments will only continue to grow trans- action volume within our sector and we expect a steep rise in property transactions during the third and fourth quarters and beyond. “So, with rising rents, and banks beginning to loan at competitive rates again, we are very optimistic about our marketplace.” said Wellar. Lonberger comments “To add to this optimism we’ve
adelphia and its surround- ing area. The city’s emer- gence is es- pecially ex- emplified by the return of the multi- family hous- ing market. Na t ur a l l y, with a grow- ing number of employed r e s i d e n t s ( es t ima t es show around 36,800 new jobs created
Ken Wellar
Corey Lonberger
this year) looking for hous- ing, vacancy will continue to go down. After 2012, where vacancy stood still at 5.2%, 2013 already has seen that number fall to 4.8% and by all forecasts will continue to decrease. “The demand for these as- sets are rising at a faster rate than the new supply of new construction expected to come online in the next two years, causing the rental prices to rise.” said Corey Lonberger, managing partner of Ritten- house Realty Advisors. This idea is shown by the fact that average effective rates on rentals are estimated to rise upwards of 2% this year in the multi-family market. Even more proof of the return of the multi-family housing market in the city of Philadelphia, as well as the nation, is a 5% jump in the construction of said buildings. friendly locales, as evidenced by the solid pipeline of prop- erties now under contract. At Gebroe-Hammer, the firm’s market specialists are averag- ing two deals per week in 2013 and are on pace to exceed last year’s historic benchmark of 86 deals representing more than 6,000 units sold. It looks like clear skies for multi-fam- ily investment properties, which will surely continue their scorching reign this year and beyond. Ken Uranowitz is presi- dent of Livingston, NJ- based Gebroe-Hammer As- sociates. n continued from page 8A By Ken Uranowitz
FOR SALE: "$PNNFSDJBM3FBM&TUBUF"EWJTPSZ$PNQBOZ
Montgomery County Development Site 149 Units
C all for Offers
Diamond Green
Philadelphia
$31,000,000
Bloomsburg Portfolio
Bloomsburg
$26,250,000
Temple Portfolio
Philadelphia
$7,300,000
Willowbrook
Boothwyn
$6,100,000
Prescott Arms
Upper Darby
$2,800,000
Casa Di Amici
Chester
$1,200,000
Delaware County Mixed Use
$1,115,000
4626 & 4641 Spruce
Philadelphia
$965,000
+PIO',FOOFEZCPVMFWBSE 1IJMBEFMQIJB 1" XXXSJUUFOIPVTFSFBMUZDPN
Made with FlippingBook - Online catalogs