www.marejournal.com
Real Estate Journal — Mid-Year Review — June 27 - July 10, 2014 — 3C
1 -( % 80%28-'
M ULTI -F AMILY
By Ken Wellar, Rittenhouse Realty Advisors Expect a heat-up in investment multi-family sales to close out 2014
ter of this yea r t han in 2013 , I predict that the velocity will increase and s a l e s t h i s y e a r w i l l e v e n surpass last W
hile multifamily sales were slower in the first quar-
kets. Generation Y/Millennial renters have a “work/play/ live” mentality and choose where they live based on that lifestyle. Employers all across the country are noticing that the newest generation to join the workforce want to live in vibrant urban markets, and are responding by moving WKHLURIÀFHVGRZQWRZQ2YHU WKH QH[W ÀYH \HDUV H[SHFW D boom in the tech sector, with even more small start-up’s es- WDEOLVKLQJ GRZQWRZQ RIÀFHV attracting Millennials into the cities across the country. In Philadelphia, the grow-
ing population of affluent renters is drawing more exter- nal investors and capital into
Philadelphia marketplace. Other reasons we expect the apartment market to be hot
who are selling assets capital- ize on multiple offers on their listed properties. In fact, we have been receiving multiple offers on many of the proper- ties we are marketing, often accompanied by quick a due diligence period and clos- ing. My recommendation to owners who are on the fence about selling: now is the time to consider moving forward, given the current low interest rates and the quickening pace of the market. KenWellar is the manag- ing partner at Rittenhouse Realty Advisors.
“My recommendation to owners who are on the fence about selling: now is the time to consider moving forward, given the current low interest rates and the quickening pace of the market.”
the city. We’ve recently seen new buyers from markets like New York and D.C. who are looking at Philadelphia as a more affordable option in comparison. With all the construction of class A apart- ment buildings, expect more institutions to come in the
include a trend we’ve been noticing where investors who WUDGLWLRQDOO\ SXUFKDVH RIÀFH and retail, are now trying to get into the apartment sec- tor in order to diversify their portfolios. Additionally, the PDUNHWKDVVKLIWHGWREHQHÀW sellers. We’ve seen our clients
Ken Wellar
year’s total. Low interest rates continue to drive cap rate compression with the ten year hovering around 2.60. We are advising our clients to put longer term debt on their properties if they plan on holding them for longer than 5 years. Debt and equity are starting to look like 2005-2007 again, with many different options for borrowers. From LiFeco to CMBS to Regional and agency debt, developers and investors have a great YDULHW\RIRSWLRQVLQÀQDQFLQJ their properties and projects. As a result, we’ve seen more development of multifamily properties all over the coun- try. In fact, the current rate of development in Philadel- SKLDZKHUHRXUPDLQRIÀFHLV located, is one of the highest in the city’s history. The current multifamily market is healthy and new product is being absorbed. Not only are we seeing product in core locations being absorbed quickly, but in secondary loca- tions as well. This is a direct result of new renters moving into the downtown, CBDmar- continued from page 2C The peaks, valleys and everything... the past. A balance between cost-saving measures, fu- ture plans, market demand and current availability is needed. There’s no longer a straightforward equation. Owners and tenants now look at the softer side of that equation by placing a stronger emphasis on prop- erty quality and lifestyle considerations. As a firm specializing in client service, we’ve always focused on the “everything in between.” William O’Keefe joined Cassidy Turley in 2012 and serves as a senior vice presi- dent. O’Keefe focuses on expanding Cassidy Turley’s tenant and landlord adviso- ry and brokerage services.
A Sample of Our 2014 Closings
Bloomsburg Student Housing Portfolio
Bloomsburg, PA Philadelphia, PA Philadelphia, PA New Castle, DE Philadelphia, PA Philadelphia, PA Philadelphia, PA
394 Beds 80 Units 17 Units 240 Units 12 Units 10 Units 88 Units 14 Units 16 Units
Linden Court Apartments
West Girard Avenue Portfolio
The Villas
Corey Lonberger, Managing Partner corey@rittenhouserealty.com KenWellar, Managing Partner ken@rittenhouserealty.com Mark Duszak, Director mark@rittenhouserealty.com
4437-4439 Chestnut Street Portfolio
527 South 42nd Street
Wyndmoor Gardens
Elliger Park Apartments
Fort Washington, PA
Maison Ridge Apartments
Phoenixville, PA
F O R S A L E
Melrose Court Elkins Park, PA $6,630,000 | 78 Units
The Lennox Apartments Philadelphia, PA $8,900,000 | 155 Units
Main Street Mixed-Use Bloomsburg, PA $2,800,000 | 22 Apts, 6 Retail
Metroplitan-Overbrook Philadelphia, PA $11,000,000 | 222 Beds
Willow Hill Apartments Philadelphia, PA $5,950,000 | 64 Units + Commercial
Rocktowne Student Townhomes Shippensburg, PA $11,000,000 | 300 Beds
Other L i s t i ngs
Washington Crossing
Allentown, PA
108 Units 548 Beds
$6,000,000 $3,885,000 $3,600,000 $3,050,000 $2,495,000 $2,750,000 $1,550,000
Temple University Development Site
Philadelphia, PA Philadelphia, PA Wilkes-Barre, PA Philadelphia, PA Flourtown, PA Philadelphia, PA
1206 Walnut Street
8 Mixed-Use
Cumberland Apartments Jendora Court Apartments Independent Living Dev. Site Benjamin Court Apartments
60 Units 41 Units 107 Units 26 Units
For information on these listings and more, visit www.RittenhouseRealty.com or call (215) 454-2852
Made with FlippingBook - professional solution for displaying marketing and sales documents online