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Real Estate Journal — Spring Preview — April 24 - May 14, 2015 — 7A
M id A tlantic
M ulti -F amily S ales By Mark Duszak, Rittenhouse Realty Advisors 2015 Multi-Family prices will outshine 2014 prices
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sell their spacious suburban homes in order to downsize and eliminate the need for home up- keep and maintenance. These empty-nesters are willing to pay high premiums for higher quality product in desirable locations. Additionally, 55 plus communities are offering these renters high-end finishes and luxury amenities. Construction in major metro- politan areas continues to move at full speed. Philadelphia developers are hard at work to keep up with the demand for high-quality rental units. Current renters are paying
2015 bull market. Sellers will be able to exit with high prices and buyers will be able to ex- ecute with low interest rates. Rittenhouse Realty Advisers can offer strategic advice on developing a plan that fits your Multi-Family goals. Rittenhouse Realty Advisors is a Philadelphia, PA based real estate advisory firm with an extensive focus in the broker- age of multi-family communi- ties throughout the Northeast region of the United States. Mark Duszak is a director at Rittenhouse Realty Advi- sors. n
ast year, Rittenhouse Realty Advisors pre- dicted 2014 Multi-Fam-
i l y p r i c e s w o u l d i n - crease from 2 0 1 3 . W e believe this t r e n d w i l l continue in 2015. The Tri- State region experienced
Bloomsburg Portfolio
Mark Duszak
strong sales velocity last year. The high demand for Multi- Family product resulted in record per-unit pricing for the region in 2014. In 2014, Rittenhouse Realty Advisors sold north of 2,100 apartment units representing more than $137 million in con- sideration. Examples of garden- style apartment sales include: Lancaster Court – 320 Units in Wilmington, DE, Washington Crossing Apartments – 108 Units in Allentown, PA and Linden Court Apartments – 80 units in Northeast Philadel- phia. Examples of student housing sales include: The Bloomsburg Portfolio – 147 units in Bloomsburg, PA and The Metropolitan at Overbrook – 222 beds master leased to St. Joseph’s University in Phila- delphia. Record breaking price per unit sales were seen in the Center City, Suburban Phila- delphia, Lehigh County, New Jersey and Delaware markets. Why do Multi-Family prices continue to shine? It is evident that the profile of the typical renter has changed considerably in the last few years. “Millennials,” who expe- rienced living through the hous- ing crisis, do not prioritize home ownership like the generations before them. A report released by the Joint Center for Hous- ing Studies entitled "America's Rental Housing: Evolving Mar- kets and Needs," states that the share of U.S. households turning to the rental market to meet their housing needs rose over the last decade, bringing the total number of renters to 43 million by early last 2013. Additionally, an astonishing 50% of renters pay more than 30% of their income for hous- ing. With more than 30% of their income going toward rent, it will be very challenging for these serial renters to save for a down payment toward home ownership. “Baby Boomers” are continu- ing to gain a larger presence in the rental pool as many
as much as $3/sf to live in the city of Philadelphia, where they can have walking access to restaurants, night life and entertainment.
Multi-Family owners, in- vestors and developers will continue to prosper in 2015 and both sellers and buyers will be able to capitalize on the
FOR SALE
Pastorius Court - 42 Units $7,250,000
Lofts at 620 Corson - 31 Lofts $2,250,000
Keystone Lofts - 57 Units $7,900,000
Property Delco Portfolio Keystone Lofts Pastorius Court
Location
Units
List Price
Upper Darby, PA Philadelphia, PA Philadelphia, PA Lansdale, PA Flourtown, PA Philadelphia, PA Norristown, PA Philadelphia, PA West Chester, PA Philadelphia, PA
148 Apts + 8 Commercial 56 Apts + 1 Commercial
$8,000,000 $7,900,000 $7,250,000 $2,900,000 $2,750,000 $2,425,000 $2,250,000 $1,700,000 $1,350,000 $1,135,000 $900,000
42 Apartments
305-305 Main Street
13 Apts + 4 Commercial Approved for 107 Units
Haws Lane Development Site
Drexel Student Housing
30 Bedrooms
Lofts at 620 Corson Glenwood Lofts Rothrock Manor
31 Loft Apartments Approved for 46 Units
8 Apartments 22 Apartments 34 Bedrooms
5729-5731 N 3rd Street
Penn State Hazelton Student Housing REO
Hazelton, PA
Corey Lonberger, Managing Partner corey@rittenhouserealty.com
Mark Duszak, Director mark@rittenhouserealty.com
KenWellar, Managing Partner ken@rittenhouserealty.com
RCA Sources Financing for the Full Range of Commercial Real Estate Asset Types: Retail, Office, Industrial, Healthcare, Hospitality, Multi-Family, Development, Special Purpose, Senior Apartments, Student Apartments, Mixed-Use & More!
George Johnson, President & CEO george@rittenhousecapital.com
Joe Hanuscin, Sr. Client Manager joe@rittenhousecapital.com
For information visit www.RittenhouseRealty.com or call (215) 454-2852
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