8A — May 15 - 28, 2020 — Multifamily Development — M id A tlantic Real Estate Journal
www.marej.com
M ultifamily D evelopment
he multi-family real es- tate market is moving forward in a dynamic By Mark Duszak, Rittenhouse Realty Advisors How will Covid -19 Change multi-family investment in the Tri-State? Looking Forward… T
including 42 units in Wilming- ton, DE, which traded north of $115,000 per unit, and 64 units in Easton, PA, which traded north of $110,000 per unit. We have a full pipeline ahead and expect this positive sales trend to continue. Rittenhouse Realty Advisors is extremely bullish on the future of multi-family in- vestments in the Tri-State once the area is open for business. Mark Duszak is director of Rittenhouse Realty Ad- visors based in Philadel- phia, PA. RRA sells prime Center City, Phila. development site PHILADELPHIA, PA — Rittenhouse Realty Advi- sors sold an 8,970 s/f devel-
up for business. Buyers will continue to ac- tively invest in multi-family because interest rates are the lowest in history, allowing extremely favorable financ- ing for acquisitions. In addi- tion, the recent volatile stock market will shift more equity into stable multi-family invest- ments which will keep capital- ization rates low. Even though COVID-19 has had a negative impact on construction lend- ing, the resulting reduced supply of new apartments will create more demand for existing apartments and will keep prices for those proper-
ties high. The universal truth will remain that renters will con- tinue to rent. We expect lon- ger tenant retention because renters will be less likely to move post-COVID-19 to avoid new contacts and to avoid unnecessary credit implica- tions. With the more volatile employment market, many renters will need to put off planned home purchases. Furthermore, we feel there will be less roommate sharing in a post-pandemic, health- conscience environment which will also increase the number of units rented.
Multi-family investment sales in New Jersey, Pennsyl- vania and Delaware were ex- tremely robust pre-COVID-19. Rittenhouse Realty Advisors notable Tri-State sales before the pandemic include 108 units in Carney’s Point, NJ which traded north of $90,000 per unit; 124 units in West Chester, PA which traded north of $300,000 per unit; and 62 units in Philadelphia, PA which traded north of $350,000 per unit. Since on the onset of CO- VID-19 in March, Rittenhouse Realty Advisors has closed sevenmulti-family investments
fashion that c o n t i n u e s t o e v o l v e weekly. So- cial distanc- ing, on-line apa r tmen t t ours , and less person- to-person in-
Mark Duszak
teraction will be the new norm in this highly people-oriented industry. However, we feel investor demand will return to be pre-COVID-19 strength once the Tri-State opens back-
opment site l o c a t e d a t 701 S. Broad St. in Center City, Phila- delphia. The property was approved for 6 0 a p a r t - ment uni ts and was eli- gibl e for a 10-year tax abatement . The parce l has frontage on three St.s: Br oad St . , Bainbr idge
Multi-Family. Mixed-Use. Development.
Ken Wellar
APPROVED FOR60APARTMENTS PRIME DEVELOPMENT SITE CENTERCITY - PHILADELPHIA, PA
39 UNITS MIXED-USE&MULTI-FAMILY RITTENHOUSE SQUARE&FISHTOWNPHILADELPHIA, PA
Corey Lonberger
Domenick A Peronti (DE Broker of Record) License# RB0020193
St., and Kenilworth St.. “We were able to close a 60 unit development site during the middle of COVID-19 in the heart of Center City, Phila- delphia. We are still seeing a lot of activity from developers looking for prime development opportunities,” said Ken Wel- lar , managing director at RRA. The site is located on Phila- delphia’s “Avenue of the Arts” where many cultural institu- tions including the Kimmel Center and the Academy of Music are located. There is a subway stop for the Broad St. Line just two minutes away. It is also within walk- ing distance to major area employers including Jeffer- son University Hospital and Pennsylvania Hospital. “This is a great sale for RRA given the current environment we are in. With the excellent location we were able to sell the long-term upside in the project to the buyer,” said Corey Lonberger , managing partner at RRA.
64 APARTMENTS MULTI-FAMILY EASTON, PA
120 APARTMENTS MULTI-FAMILY WILMINGTON, DELAWARE
JUST FINANCED BY
OPPORTUNITY ZONE EQUITY FINANCING PHILADELPHIA, PA
MEDICALOFFICE ACQUISITIONFINANCING FREDERICKSBURG, VA
MEDICALOFFICE ACQUISITIONFINANCING MEMPHIS, TN
Rittenhouse Realty Advisors 107 S. 2nd Street, 4th Floor Philadelphia, PA 19106
ph. 215.454.2852 info@rittenhouserealty.com
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