Real Estate Journal — Pennsylvania — March 11 - 24, 2016 — 3C


M id A tlantic

P ennsylvania

A ttention A uctioneers

Philadelphia’s Rittenhouse Realty Advisors Apartment market in Tri- State area remains strong T he apartment market in the Pennsylvania, New Jersey and Delaware 95 apartment transactions total- ing almost $350,000,000 in total consideration since opening the doors three years ago.”

Have an auction to advertise? Want to showcase your company? The Mid Atlantic Real Estate Journal is the perfect place to promote your company and its services!!

ing increasing interest in the Philadelphia and surrounding markets, it is and has historical- ly been a private capital market. There is also an increased de- mand for apartment properties due to the fact that the buyer pool is getting larger and larger. “People are scared of the stock market. We are seeing more and more investors taking their money out of their retirement accounts and investing inmulti- family,” said Corey Lonberger , a managing partner at RRA. “Our team focuses on multi- family private capital deals throughout the Mid-Atlantic region. We have closed on over

Special Advertising rates to all participating firms!

r i - S t a t e area remains e x t r e m e l y strong with no signs of slowing down in the imme- diate future. There are nu- merous rea- sons for this hi s tor i cal l y high demand and volume of transactions. The first is the low inter- est rate envi- ronment that r ema i ns i n place. The 10 year T-Bill, which is the driving factor for interest rates, is close to a historical

• Spread the Word about Your Company • Advertise Upcoming Real Estate Auctions • Submit Press Releases or Articles

When you look at these three factors it is easy to see why the demand for apartment proper- ties in the Tri-State area is so high. With this being an election year, along with the struggling stock market, we do not expect that the Federal Reserve will be doing any drastic increases to rates anytime soon. If rates stay low and the buyer pool continues to grow, simple economics tells us that the apartment market in this area will remain strong for the immediate future. n

If interested in this opportunity, Contact Barbara: bholyoke@marejournal.com | P: 781.871.5298 x202

Mark Duszak


Going.... Gone!


Ken Wellar



Corey Lonberger

low; on 2.29.2016 it was as low as 1.75%. As long as there is no significant jump, we will continue to see significantly low rates in place for borrowers. This in turn helps sellers achieve “top of the market” pricing as interest rates and cap rates are highly correlated with one another. “With borrowers obtaining 100- 150 BPS spreads between their interest rate and cap rate, deals are making sense compared to alternative investments,” said Mark Duszak , a director at Rittenhouse Realty Advisors (RRA) . The lower the cap rate, the higher the price sellers are able to obtain. “This is the main reason why we have been seeing historically high prices per unit in the Tri-State area,” said Ken Wellar , a managing partner at RRA. Another reason we are seeing high demand for apartments is that there is a lack of supply be- ing offered for sale. With these low interest rates, it would be expected that more product type would be changing hands, but that is not the case. The majority of the product in the area, spe- cifically the Philadelphia MSA, is owned by family owned private capital operators. Historically this buyer pool has been less likely to sell when compared to “institutional” investors as they are building their portfolios for future generations, rather than holding for a certain time period and then selling to meet investor required action items. Although institutional investors are show-

UNIVERSITY CITY PORTFOLIO Philadelphia, PA 48 Bedrooms | $4,650,000

TEMPLE STUDENT HOUSING Temple University Area - Philadelphia, PA 82 Beds | $8,400,000


LOFTS at RIBBON PLACE York, PA 64 Units | $6,200,000

1206 WALNUT STREET Washington Square West - Philadelphia, PA 8 Units | $3,650,000

DELAWARE COUNTY PORTFOLIO Holmes & Morton, PA 43 Units | $3,450,000

CHRISTIAN STREET PORTFOLIO Graduate Hospital - Philadelphia, PA 19 Units | $3,020,000


DEVELOPMENT SITE Elkton, MD 504 Proposed Units | $7,500,000

REDEVELOPMENT SITE Rittenhouse/Fitler Square - Philadelphia, PA Lot: 5,529± SF; Building: 27,500± SF

Vi ew More Ava i l ab l e L i s t i ngs on Our Webs i te

Corey Lonberger, Managing Partner corey@rittenhouserealty.com

Mark Duszak, Director mark@rittenhouserealty.com

KenWellar, Managing Partner ken@rittenhouserealty.com

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

Made with FlippingBook - Online Brochure Maker