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Mid Atlantic Real Estate Journal — Pennsylvania — Section C
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Pierce & Thomson of Marcus & Millichap broker $25.7 million apartment complex sale Price per unit is the highest achieved in the Harrisburg market this year
H
ARRISBURG, PA – Marcus & Millichap Real Estate Invest-
properties representing more than 1,000 units in Central PA markets over the past few years. The sale of Ivy Ridge is evidence that large private investor groups and institu- tions are willing today to move beyond primary markets into secondary markets in order to purchase quality assets with higher yields,” added Pierce “Two of the top three interested parties in this transaction were New York-based institutional investment groups. In previ- ous years, institutional inves- tors would typically forego opportunities in the Harrisburg market, but with pricing in core markets like Philadelphia, NY and Washington, D.C. reach- ing 2007 levels, it has become
necessary for buyers to expand their horizons,” Pierce contin- ued. “Secondary markets with strong economic fundamentals like Harrisburg, which can offer investors a cash-on-cash return 100 to 200 basis points better than real estate in core mar- kets, are attractive again.” “The city of Harrisburg has at times been portrayed in a less than positive light due to its financial troubles, which has resulted in a certain amount of investor skepticism,” said Thomson. “In reality, Harris- burg’s suburban apartment market has strong economic drivers and quality school systems, and the financial chal- lenges are contained within city limits.” ■ erty was marketed for sale in a competitive bidding process overseen by Rockwood Real Estate Advisors . That’s when BET made its move to buy it. “We felt that the property is in an excellent location and has the capacity to serve as a great redevelopment opportunity,” said Michael Markman , president of BET Investments. “The property is extremely well located from both access and visibility stand- points.” ■
ment Services has arranged the sale of Ivy Ridge Apart- ments, a 218-unit, newly con- structed, garden-style apart- ment complex in Harrisburg. The $25.705 million sales price equates to $117,913 per unit, which represents a new price per unit high in the Harrisburg market this year. Zachary Pierce and Mark Thomson , directors of Marcus & Millichap’s National Multi Housing Group in Philadel-
Ivy Ridge Apartments
phia, represented the seller. The buyer, also procured by Pierce and Thomson, is a large operator of multifamily assets based in Northern NJ. “The marketing process for
this asset went very quickly due to the demand for quality assets and the increased returns that can be achieved in a secondary market,” said Pierce. “We have sold approximately one dozen
OCTOBER 11 - 24, 2013
HI-LIGHTS
Site planned for a redevelopment mixed-use project BET Investments acquires 1 million s/f Granite Run Mall in Media, Pennsylvania for $24.25 million
Eastern Pennsylvania 5-12C SPOTLIGHT Malik & Rudy of NAI CIR negotiate $2.64 million sale
MEDIA, PA — BET Invest- ments Inc. has acquired the Granite Run Mall. The Hor- sham Rea l Es t a t e Co . paid $24.25 mi l l i on f or the 1 million s/f regional mall off Bal- timore Pike i n Me d i a . The property was weighed down by more than $115 mil- lion in debt. The transaction highlights how owners of commercial real estate properties ran into problems during the recession when they couldn’t make loan payments or were unable to renegotiate the terms of loans backed by everything from of- fice buildings, malls and retail centers. It appears in the case of Granite Run that the lender and the partnership couldn’t reach a compromise. In April 2011, the special servicer over- seeing a $115.1 million loan on the property took the mall over from the partnership that owned it. It eventually fore- closed on the mall. The prop- Michael Markman
Granite Run Mall
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Hauck of NAI Comm’l. Partners negotiates $1.75m industrial sale
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