2C — November 14 - 27, 2014 — Pennsylvania — M id A tlantic

Real Estate Journal


P ennsylvania

he multi-family mar- ket in the Mid-Atlan- tic region remains a By Corey Lonberger, Rittenhouse Realty Advisors Multi-family buying remains apopular option for investors T

IndustRIAL I OffICE I REtAIL I InvEstmEnt I muLtI fAmILY

terest rates and cap rates we will continue to see investors chase yields,” said Corey Lonberger, managing part- ner at Rittenhouse Realty Advisors . This allows for sellers to take advantage of the low rates and obtain his- torically high prices for their properties. Also helping with the increased demand for apartment properties in the northeast corridor is a lack of product type on the market. “There are very few properties on the market, which is creating an enor- mous amount of competition for the assets that are cur-

r ent l y f o r sale,” said Ken We l - lar , also a ma n a g i n g partner of Rittenhouse Realty Ad- visors. Both o f t h e s e factors are causing cap r a t e s t o c omp r e s s . “We are see- ing class ”A” proper t i es and proper- ties with a strong value add compo- nent trade at sub 5% c a p r a t e s on trailing 1 2 mo n t h n um b e r s . For “B” and “C” product types and

Representing clients in the Central Pennsylvania region of: • Harrisburg • Carlisle • York • Lebanon • Lancaster • Hershey

popular op- tion for in- vestors. The 10-year T- bill remains l o w a n d c o n t i nu e s to keep in- terest rates at all-time

Ken Wellar

Corey Lonberger

lows for multi-family buyers. This is keeping cap rates at historic lows and driving values up. “As long as inves- tors can get their 100-150 bps spread between the in-

20 Erford Road, Lemoyne, PA 17043 I 717-731-1990 I www.landmarkcr.com

Mark Duszak


George Johnson

locations we are seeing prop- erties trade in the 6%-6.5% cap rate range on trailing 12 month numbers,” said Lonberger. The question is, how long will these days last? “The 10- year has to go up and when it does we will see capitaliza- tion rates move higher too,” said Mark Duszak , director of Rittenhouse Realty Advi- sors. The question is really, how long will these high val- ues be around? Some sources think that the 10 year could rise as soon the first quarter of 2015 while other sources think it could be 8 to 12 months out. “The bottom line is that the 10- year will rise and when it does we will see interest rates and cap rates rise as well,” added Wellar. George Johnson of RRA’s debt and equity arm Rittenhouse Capital Advi- sors said, “Now is the time to either sell or refinance. We are at a very unique place in the market and if you are not selling you should be refinancing and locking in for the long term, as rates will only be going up.” In 2014 Rittenhouse Re- alty Advisors has sold north of 1,400 units totaling over $113,000,000 in consider- ation. Corey Lonberger is a managing partner at Rit- tenhouse Realty Advi- sors. n

Student Housing Metropolitan Overbrook Philadelphia, PA

REO Hollywood Court Reading, PA

Mixed-Use 133 N 3rd Street Philadelphia, PA

RRA Closed on 216 Units Totaling $15,290,000 in Consideration in the Month of October.

77 Key Hotel Dover, DE

Multi-Tenant Office Ft. Washington, PA

5 Property Multi-Family Center City, Philadelphia, PA

RCA Secured Financing in the Amount of $12,625,000 for Commercial, Hospitality and Multi-Family Portfolios in the last 45 days. For a total of $27,915,000 in Closed Transactions!

For information visit www.RittenhouseRealty.com or call (215) 454-2852

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