Yearly Archives: 2019

Marcus & Millichap’s 4th Quarter Multifamily Research Market Report for the Philadelphia Metro Area has been released. Elevated apartment absorption drops vacancy and improves rents. Development activity contracts in Center City, but expands throughout the suburbs.

Click the link below to view the full report. If you would prefer to view a hard copy of the report, or if you would like to view a report for a market other than Philadelphia, please give us a call at 215-531-7019.

Click here to view Marcus & Millichap’s 4th Quarter Multifamily Research Market Report

Marcus & Millichap is pleased to announce the sale of three Philadelphia MSA multifamily assets: Farrand Village in Delaware, Northridge Townhomes in New Jersey, and 135-137 North 3rd Street in Philadelphia. The assets traded for a combined $26 million.

PHILADELPHIA, Sept. 12, 2019 – Marcus & Millichap (NYSE: MMI), a leading commercial real estate investment services firm with offices throughout the United States and Canada, has announced the sale of three multifamily properties in the Delaware Valley for $25.9 million.

“We are seeing a high level of buyer demand for workforce housing Class B and C assets, as well as urban trophy multifamily and mixed-use properties,” said Andrew Townsend, first vice president investments in Marcus & Millichap’s Philadelphia office. “Both product types are performing very well in the Philadelphia MSA due to the diverse and tight job market. Market conditions make this a terrific time for sellers and the depressed level of inventory, continued low interest rates, strong fundamentals, and increased buyer pool ensure the market for apartment assets will remain extremely competitive.”

The three properties were all exclusively listed by Townsend, Ridge MacLaren, Clarke Talone and Daniel Bernard and closed within four weeks of each other. The properties are:

• Farrand Village, 165 units, Wilmington, Del., $11 million
• Northridge Townhomes, 87 townhouse-style units, Pleasantville, N.J., $8.3 million
• 135-137 North 3^rd, 16 luxury apartments and two high-end retail spaces, Philadelphia, $6.6 million

“Multifamily investments in the Delaware Valley typically provide investors with an attractive yield and better regulatory environments than New York or Washington, D.C.,” added Talone. “We are seeing an abundance of new, out-of-area capital coming into the Philadelphia market, which has created a new buyer pool. A number of our transactions this year were purchased by buyers that are new to this market.”

According to Marcus & Millichap’s 3Q19 Philadelphia Local Apartment Report, multifamily is outperforming expectations due to extremely low unemployment and job growth in the Philadelphia MSA. Job growth is also fueling absorption of new product, primarily in Center City and King of Prussia. Vacancy is forecast to drop below 4% this year for the first time since 2006, which is notable given the continued delivery of new units. It is anticipated that 2019 will see the completion of 6,100 new units across the Philadelphia MSA, which is a 20-year high.

“The Marcus & Millichap platform is uniquely positioned to bring new capital to the Philadelphia apartment market,” continued Talone. “The firm continues to tap into apartment investors from other markets, as well as investors that have historically invested in other asset classes, such as retail or office. The sale of these three assets speaks to the continued strength of the apartment market in the Delaware Valley.”

So far this year the team of MacLaren, Talone, Townsend and Bernard has closed 12 transactions worth just under $100 million and has seven properties under contract valued at $53 million. Donald R. MacLaren, Jr. is Marcus & Millichap’s broker of record in Delaware, the firm’s New Jersey broker of record is Brian Hosey and Sean Beuche is Marcus & Millichap’s broker of record in Pennsylvania.

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About Marcus & Millichap (NYSE: MMI)

With nearly 2000 investment sales and financing professionals located throughout the United States and Canada, Marcus & Millichap is a leading specialist in commercial real estate investment sales, financing, research and advisory services. Founded in 1971, the firm closed 9,472 transactions in 2018 with a value of approximately $46.4 billion. Marcus & Millichap has perfected a powerful system for marketing properties that combines investment specialization, local market expertise, the industry’s most comprehensive research, state-of-the-art technology, and relationships with the largest pool of qualified investors. To learn more, please visit: www.MarcusMillichap.com.

Team member Andrew Townsend was quoted in a Bisnow article published August 28, 2019. Despite gloomy forecasts, 2019 has proven to be a banner year for Philadelphia’s multifamily market so far. “I certainly don’t think that the pipeline has shut off,” Townsend said. “It has maybe dipped a little bit this year [in Center City] compared to the last two years, and that may just be down to one big project that was completed last year that won’t be getting done this year.”

Read more about the outlook for the Philly multifamily market on Bisnow.com

Marcus & Millichap’s 3rd Quarter Multifamily Research Market Report for the Philadelphia Metro Area has been released. Robust renter demand in pockets of greatest construction continue to drive performance gains. The Philadelphia suburbs are continuing to flourish, while cranes stay in Center City as development increases in New Jersey.

Click the link below to view the full report. If you would prefer to view a hard copy of the report, or if you would like to view a report for a market other than Philadelphia, please give us a call at 215-531-7019.

Click here to view Marcus & Millichap’s 3rd Quarter Multifamily Research Market Report

Marcus & Millichap is pleased to announce the sale of the Gladiator Portfolio II – A 95-unit portfolio in South Jersey

West Deptford, NJ, June 18, 2019 – Marcus & Millichap (NYSE: MMI), a leading commercial real estate investment services firm with offices throughout the United States and Canada, has announced the sale of the Gladiator Portfolio II, a three-property, 95-unit apartment portfolio located in Southern New Jersey for $5,695,000. The portfolio sale represents the second phase of a seven-property sale totaling 189 units. All seven properties are located in Burlington, Camden, and Gloucester counties.

Andrew Townsend and Clarke Talone, both first vice president investments, and Ridge MacLaren, senior vice president investments, in Marcus & Millichap’s Philadelphia office, had the exclusive listing to market the property on behalf of the seller, a limited liability company, who owned the property since the mid 2000s. The buyer was secured and represented by the team as well.

“The properties are comprised of older, well-occupied, garden-style properties located in solid neighborhoods close to Philadelphia. It is a great value add opportunity for the buyers,” said Talone. “The investment demand in South Jersey continues to grow,” said Townsend. “We are very active in South Jersey. Investors from out of the area are seeing value due to heightened pricing in the New York and Philadelphia markets.”

The Gladiator Portfolio II is comprised of three garden-style apartment communities, all located in Southern New Jersey. Westwood Court Apartments is a 40-unit property in West Deptford, East Browning Apartments is a 35-unit property in Bellmawr, and Town House Apartments is a 20-unit property located in Burlington. The properties provide well-maintained workforce housing in middle- to upper-income suburban towns. The portfolio has been historically fully occupied. The new owner has the opportunity to begin a renovation program and increase rents.

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About Marcus & Millichap (NYSE: MMI)

With nearly 2000 investment sales and financing professionals located throughout the United States and Canada, Marcus & Millichap is a leading specialist in commercial real estate investment sales, financing, research and advisory services. Founded in 1971, the firm closed 9,472 transactions in 2018 with a value of approximately $46.4 billion. Marcus & Millichap has perfected a powerful system for marketing properties that combines investment specialization, local market expertise, the industry’s most comprehensive research, state-of-the-art technology, and relationships with the largest pool of qualified investors. To learn more, please visit: www.MarcusMillichap.com.

Marcus & Millichap’s 2nd Quarter Multifamily Research Market Report for the Philadelphia Metro Area has been released. Investors are increasingly turning to Philadelphia’s Center City as developers look farther out. Construction activity has expanded in certain suburbs, with the western Philadelphia suburbs welcoming more than 1,000 units this year. Renters are seeking residential options with downtown access that are comparatively more affordable.

Click the link below to view the full report. If you would prefer to view a hard copy of the report, or if you would like to view a report for a market other than Philadelphia, please give us a call at 215-531-7019.

Click here to view Marcus & Millichap’s 2nd Quarter Multifamily Research Market Report

Marcus & Millichap is pleased to announce the sale of Mountain Lane Apartments – A 24-unit property in Allentown, Pa.

ALLENTOWN, Pa., April 12, 2019 – Marcus & Millichap (NYSE: MMI), a leading commercial real estate investment services firm with offices throughout the United States and Canada, has announced the sale of Mountain Lane Apartments, a three building, 24-unit apartment property comprised of three 1-bedroom units, nineteen 2-bedroom units and two 3-bedroom units.

Daniel Bernard, associate, Andrew Townsend and Clarke Talone, both first vice president investments, and Ridge MacLaren, senior vice president investments, in Marcus & Millichap’s Philadelphia office, had the exclusive listing to market the property on behalf of the seller, an individual/personal trust, who had owned the property for 21 years. The buyer, a private company, was secured and represented by the team as well. The buyer plans to renovate all the units and address the capital improvement needs of the complex in order to increase rents substantially.

“This transaction shows the strength of the Lehigh Valley market and the overall apartment market, given how quickly the property was approached by investors and the speed at which it went under contract,” states Bernard. “Investors from New York and Philadelphia are starting to look toward the Lehigh Valley as a means to obtain higher yields where demographics continue to improve, and development is picking up.”

Mountain Lane Apartments is located at 2901 Ithaca Street in Allentown, Pa.

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About Marcus & Millichap (NYSE: MMI)

With nearly 2000 investment sales and financing professionals located throughout the United States and Canada, Marcus & Millichap is a leading specialist in commercial real estate investment sales, financing, research and advisory services. Founded in 1971, the firm closed 9,472 transactions in 2018 with a value of approximately $46.4 billion. Marcus & Millichap has perfected a powerful system for marketing properties that combines investment specialization, local market expertise, the industry’s most comprehensive research, state-of-the-art technology, and relationships with the largest pool of qualified investors. To learn more, please visit: www.MarcusMillichap.com.

Marcus & Millichap is pleased to announce the sale of Applegate Apartments and Applecore Apartments – 84 units in Montgomery County, Pa. The properties recently traded hands for $8,562,500.

HATFIELD, Pa., March 28, 2019 – Marcus & Millichap (NYSE: MMI), a leading commercial real estate investment services firm with offices throughout the United States and Canada, has announced the sale of 84 units in Montgomery County, Pa. The transaction closed for $8,562,500, and included Applegate Apartments and Applecore Apartments.

Andrew Townsend and Clarke Talone, both first vice president investments, Ridge MacLaren, senior vice president investments, and Daniel Bernard, associate, in Marcus & Millichap’s Philadelphia office, facilitated the transaction and represented the buyer, a limited liability company. The buyer plans to begin renovations to upgrade the property, and increase rents so they are more in-line with the market.

“Value-add multifamily is still in high demand,” says Talone. “Buyers are willing to accept low current returns for an opportunity to improve a property and generate higher rents.”

The seller was a family trust who had owned the property for decades. “The seller was the second generation of the original developer of the property, who had owned it for 48 years,” notes Townsend.

The transaction included the 72-unit Applegate Apartments in Hatfield and the 12-unit Applecore Apartments in Souderton. Applegate is located at 434 West Vine Street in Hatfield, Pa. Applecore is located at 464, 472, and 480 2^nd Street in Souderton, Pa. Both towns are known for being excellent suburban locations, and are close to major employment centers.

• • •

About Marcus & Millichap (NYSE: MMI)

With nearly 2000 investment sales and financing professionals located throughout the United States and Canada, Marcus & Millichap is a leading specialist in commercial real estate investment sales, financing, research and advisory services. Founded in 1971, the firm closed 9,472 transactions in 2018 with a value of approximately $46.4 billion. Marcus & Millichap has perfected a powerful system for marketing properties that combines investment specialization, local market expertise, the industry’s most comprehensive research, state-of-the-art technology, and relationships with the largest pool of qualified investors. To learn more, please visit: www.MarcusMillichap.com.

Marcus & Millichap is pleased to announce the sale of Ashland Terrace – A 27-unit property in Secane, Pa. The property recently traded hands for $1,850,000.

SECANE, Pa., February 25, 2019 – Marcus & Millichap (NYSE: MMI), a leading commercial real estate investment services firm with offices throughout the United States and Canada, has announced the sale of Ashland Terrace, a 27-unit apartment property comprised of 6 one-bedroom units and 21 two-bedroom units, located in Secane, Pa. The well-maintained property sold for $1,850,000.

Clarke Talone and Andrew Townsend, both first vice president investments, Daniel Bernard, associate, and Ridge MacLaren, senior vice president investments in Marcus & Millichap’s Philadelphia office, had the exclusive listing to market the property on behalf of the seller, a private partnership. The long-term Owner had made several significant upgrades including substantial roof work, replacing boilers, and updated kitchens over the years. The buyer, a regional LLC, was secured and represented by the Philadelphia-based investment sales team as well.

“The property was only on the market for 30 days and generated 15 tours,” said Talone. “The response we received from the market is reflective of the continued demand for multifamily properties, especially properties with upside in rents, such as Ashland Terrace.”

Ashland Terrace is located at 711 Ashland Avenue in Secane, Pa.

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About Marcus & Millichap (NYSE: MMI)

With nearly 2000 investment sales and financing professionals located throughout the United States and Canada, Marcus & Millichap is a leading specialist in commercial real estate investment sales, financing, research and advisory services. Founded in 1971, the firm closed 9,472 transactions in 2018 with a value of approximately $46.4 billion. Marcus & Millichap has perfected a powerful system for marketing properties that combines investment specialization, local market expertise, the industry’s most comprehensive research, state-of-the-art technology, and relationships with the largest pool of qualified investors. To learn more, please visit: www.MarcusMillichap.com.

Marcus & Millichap is pleased to announce the sale of a development opportunity in Center City Philadelphia – The properties at 10th and Arch recently traded hands for $8,400,000.

PHILADELPHIA, January 10, 2019 – Marcus & Millichap (NYSE: MMI), a leading commercial real estate investment services firm with offices throughout the United States and Canada, announced the sale of 1018 Arch Street, a 12,396-square-foot paved lot utilized by Greyhound, and 44 North 10^th Street, a 1,485-square-foot retail lot rented by Discover Travel in Philadelphia, Pa. The combined sales price for both assets totaled $8,400,000.

Clarke Talone and Andrew Townsend, both first vice president investments, and Ridge MacLaren, senior vice president investments, in Marcus & Millichap’s Philadelphia office, had the exclusive listing to market the property on behalf of the seller, private partners that had owned the properties for several decades. The buyer, a local private investor, was secured and represented in-house by another team of collaborative agents including, Phil Sharrow, Jonathan Massaro, and Fahd Malik, all senior associates, in the Philadelphia office.

“This investment opportunity entails two NNN retail leases, providing passive income,” states Talone. “The assets were exposed locally and nationally to a substantial market of multifamily, hospitality, retail, and office investors and developers. The desirable CMX-5 zoning of the site allows for a multitude of development opportunities.”

“This lot is rare and irreplaceable ground in this urban-infill neighborhood,” said Sharrow. “Our clients are very excited to begin predevelopment in the next year or so. The project scope of the redevelopment is yet to be determined.”

The assets are located at 1018 Arch Street and 44 North 10^th Street in Philadelphia, Pa. The property is only a half block from the Pennsylvania Convention Center, and walking distance to Market East redevelopment, the Market-Frankford subway, Jefferson Station, Jefferson Hospital, City Hall, Reading Terminal Market, Chinatown and much more.

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About Marcus & Millichap (NYSE: MMI)

With over 1,800 investment sales and financing professionals located throughout the United States and Canada, Marcus & Millichap is a leading specialist in commercial real estate investment sales, financing, research and advisory services. Founded in 1971, the firm closed over 9,000 transactions in 2017 with a value of approximately $42.2 billion. Marcus & Millichap has perfected a powerful system for marketing properties that combines investment specialization, local market expertise, the industry’s most comprehensive research, state-of-the-art technology, and relationships with the largest pool of qualified investors. To learn more, please visit: www.MarcusMillichap.com