Marcus & Millichap’s 1st Quarter Apartment Research Market Report has been released. Overall, vacancy decreased while rents increased. Against a background of growing demand drivers, Philadelphia is in the midst of a construction cycle that may be seen as a response to growing rental housing demand and shifting housing preferences away from ownership.
Click the link below to view the full report.
“Philadelphia is a city of firsts. Steeped in history, it is also a modern renaissance city. And now, a new generation is making Philadelphia its city of first choice,” says writer Susan Burnell. The city has reclaimed its reputation as a thriving city, thanks in part to its growing population of young and educated professionals.
PHILADELPHIA, PA, February 19, 2015 –The Center City District released its annual housing report Tuesday, and the news was positive. Asking rents are up in every neighborhood, and there appears to be no need to worry about overbuilding, thanks to strong and consistent demand. Click the links below to read the full report, as well as two follow-up articles by PlanPhilly.com and Philly.com. Take advantage of the unprecedented momentum by contacting us today to learn about our current Philadelphia listings, or for a detailed valuation of your property.
Click here to view the Center City District’s annual housing report in its entirety
PlanPhilly.com – “Center City District: Surging Philly Apartment Market Fueled by Real Demand”
Marcus & Millichap’s 2015 National Apartment Report cites continuing steady job growth and the formation of new households as the reasons for an increase in apartment demand in the region. Vacancy will remain tight, enabling operators to increase effective rents to an all-time high by year end.
Click the link below to view the full report. Specifics about the Philadelphia market are available on Page 44 of the report.
The apartment market in Center City continued to show signs of strength in 2014. In Center City, landlords of Class A apartments saw rents increase by 3.7 percent to $2,128 a month, or $2.23 a square foot. Vacancy rose slightly from 5.5 to 5.7 percent. In the suburbs, rents increased by 3.4 percent to $1,458 a month, or $1.43 a square foot. Vacancy declined from 5.6 to 4.4 percent.
Oversupply is always a concern, especially with 4,104 units either under construction or on the boards that could hit the market in the next three years. However, with Millennials and Empty Nesters continuing to move to urban areas, companies adding jobs, and the delay in first-time homebuying, the additional units have the possibility of being absorbed without disrupting the Philadelphia market.
Click here to read the full article on the Philadelphia Business Journal’s website
Ridge MacLaren, Clarke Talone, and Andrew Townsend took part in “Movember” – An annual event during which participants grow moustaches during the month of November to raise awareness of men’s health issues.
Agents in Marcus & Millichap’s Philadelphia office participated in the month long event, which challenges men to grow moustaches to spark conversation and raise vital funds for its men’s health programs. To date, the Movember community has raised $559 million and funded more than 800 men’s health programs in 21 countries. This work is saving and improving the lives of men affected by prostate cancer, testicular cancer, mental health problems, and more.
The Movember Foundation runs the annual charity event, with the goal of “changing the face of men’s health.” Marcus & Millichap Philadelphia made a donation to the foundation at the end of the event. To learn more, click here to visit the official Movember website.
Marcus & Millichap’s 4th Quarter Apartment Research Market Report has been released. Overall, stable growth in the Philadelphia economy continues to drive demand as employers increase payrolls throughout the metro. Increased demand has lifted rents by 3.4% over the course of the year. The strong performance of the apartment sector in the area is expected to continue.
Click the link below to view the full report.
CLOSED October 2014: Queen Lane Manor | Philadelphia, PA
PHILADELPHIA, PA, October 27, 2014 – Marcus & Millichap (NYSE: MMI), a leading commercial real estate investment services firm with offices throughout the United States and Canada, announced the sale of Queen Lane Manor, a 41-unit apartment property located in Philadelphia, PA, according to Brenton Baskin, regional manager of the firm’s Philadelphia office. The asset sold for $2,900,000.
Andrew Townsend, Clarke Talone, Ridge MacLaren and Fred Paisley, investment specialists in Marcus & Millichap’s Philadelphia office, had the exclusive listing to market the property on behalf of the seller, a partnership. The buyer, a partnership, was also procured by Talone, Paisley, MacLaren, and Townsend. “Queen Lane Manor is a great asset that performed well over the years for the sellers. Ultimately, they decided to capitalize on the strong multifamily sales market and transacted in order to reposition their portfolio,” noted Paisley.
“Queen Lane Manor consistently experienced strong demand and maintained its high occupancy due to its proximity to Drexel Medical College and the SEPTA train station. The buyers were attracted to the building due to the fact that was a turnkey asset with upside thanks to the strong East Falls location,” added Talone.
Queen Lane Manor is located at 2809 West Queen Lane in Philadelphia, PA. The property is a mid-rise apartment building that was constructed in 1932, with a unit mix consisting of 16 studios, 23 one-bedroom units, and 2 two-bedroom units. It is located directly opposite the Drexel University Medical Campus, and currently caters to medical students. The new ownership intends to renovate and reposition the asset, in order to attract younger working professionals in addition to students. Marcus & Millichap Capital Corporation arranged bank financing on the transaction.
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About Marcus & Millichap (NYSE: MMI)
With over 1,300 investment 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 6,600 transactions in 2013 with a value of approximately $24 billion. The company 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
MacLaren • Talone • Townsend’s sale of Hanover Courts in Pottstown, PA, is featured in the most recent edition of the Mid Atlantic Real Estate Journal. Hanover Courts, a 92-unit apartment property, sold for $3.95 million.
Click here to read the full article on the Mid Atlantic Real Estate Journal’s website
CLOSED October 2014: Lehman Street Townhomes | Hershey, PA
HERSHEY, PA, October 10, 2014 – Marcus & Millichap (NYSE: MMI), a leading commercial real estate investment services firm with offices throughout the United States and Canada, announced the sale of Lehman Street Townhomes, a 28-unit apartment property located in Hershey, PA, according to Brenton Baskin, regional manager of the firm’s Philadelphia office. The asset sold for $1,975,000.
Clarke Talone, Ridge MacLaren, Dana Newton, Fahd Malik and Andrew Townsend, investment specialists in Marcus & Millichap’s Philadelphia office, had the exclusive listing to market the property on behalf of the seller, a limited liability company. “The seller of this property recognized the strength of the apartment market and took the opportunity to reposition their portfolio,” noted Talone.
Lehman Street Townhomes is located at 1750 Lehman Street in Hershey, PA. The property is a townhouse community that was constructed in 1988, with a unit mix consisting of 12 two-bedroom townhouses, and 16 three-bedroom townhouses. The marketing campaign yielded a motivated 1031 exchange buyer, who utilized new bank debt with excellent terms. The transaction closed approximately 2 weeks after the contract was signed. “Our marketing process yielded several property tours to local and regional investors. The ultimate buyer realized the stability of the rental market and was able to utilize attractive financing. They wasted no time in bringing the transaction to a successful closing and executed a smooth, quick transaction. The seller was ecstatic about our results, as well as our ability to execute a smooth transaction.” added Malik.
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About Marcus & Millichap (NYSE: MMI)
With over 1,300 investment 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 6,600 transactions in 2013 with a value of approximately $24 billion. The company 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