Just Closed: 108 Units in Harrisburg Sold for $6.9M
Eastridge Apartments is a 108-unit garden-style apartment community in Harrisburg, PA. The asset sold in August 2017 for $6,900,000.
HARRISBURG, Pa., August 31, 2017 – Marcus & Millichap (NYSE: MMI), a leading commercial real estate investment services firm with offices throughout the United States and Canada, announced the sale of Eastridge Apartments, a 108-unit multifamily property located in Harrisburg, Pa., according to Sean Beuche, regional manager of the firm’s Philadelphia office. The asset sold for $6,900,000.
Ridge MacLaren, Andrew Townsend and Clarke Talone, 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 team of agents received more than ten offers for the asset and ultimately procured an out-of-market buyer, a private partnership that participated in a 1031 exchange.
“The property features a 20-year family Housing Assistance Payments (HAP) contract on 98-percent of the units expiring in 2024,” said Townsend. “The seller had renovated the property in 2003 under the Low-Income Housing Tax Credit (LIHTC) program and received Pennsylvania Housing Finance Agency (PHFA) weatherization grants in 2013, which included new insulation, refrigerators, lighting, thermostats and other improvements.”
“There is still a tremendous amount of interest in well-maintained properties in strong locations, even in secondary markets,” added Talone. “Our buyer took advantage of strong agency debt, which allowed them to pay an aggressive price while still achieving strong returns.”
The 108 apartments are a mixture one-, two-, and three-bedroom units. Eastridge Apartments is situated on seven acres at 102 Worcester Ave in Harrisburg.
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About Marcus & Millichap (NYSE: MMI)
With over 1,700 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 2016 with a value of approximately $42.3 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
Marcus & Millichap Releases 3rd Quarter Multifamily Research Market Report
Marcus & Millichap’s 3rd Quarter Multifamily Research Market Report for the Philadelphia Metro Area has been released. The Philadelphia apartment market is seeing tight vacancy in the suburbs, as deliveries are concentrated in Center City. As apartment deliveries are anticipated to peak in 2017, a healthy pace of absorption continues in the second half, keeping apartment vacancy historically low.
Click the link below to view the full report.
Marcus & Millichap Releases 3rd Quarter Multifamily Research Market Report
Just Closed: Mixed-Use Asset in Lansdale
Marcus & Millichap recently traded a 20,100 SF mixed-use asset in Lansdale, PA. The sale included two properties, totaling 14 apartments and four commercial spaces.
LANSDALE, Pa., June 30, 2017 – Marcus & Millichap (NYSE: MMI), a leading commercial real estate investment services firm with offices throughout the United States and Canada, announced the sale of 303-305 West Main Street and 306 Madison Avenue, a 20,100-square foot mixed-use asset located in Lansdale, Pa.
Daniel Bernard and Philip Sharrow, investment specialists in Marcus & Millichap’s Philadelphia office, had the exclusive listing to market the property on behalf of the seller. The pair along with Andrew Townsend, first vice president investments, procured the buyer. Brenton Baskin served as Marcus & Millichap’s broker of record in Pennsylvania.
“This was a win-win for our buyer and seller,” says Sharrow. “The seller took advantage of the market’s cap rate compression due to the low interest rate environment. The seller will now complete a 1031 exchange and ultimately double his cash flow. The buyer bought into Lansdale’s progressive submarket that and will capture the appreciation that adjacent developments will drive.”
The sale included 303-305 West Main Street and 306 Madison Avenue in downtown Lansdale, Pa., totaling 14 apartments and four commercial spaces. In 2013 the owner completed the 306 Madison Avenue addition, adding ten apartments and one commercial unit. Following the addition, half of the older apartments were extensively renovated. The new and renovated units feature stainless steel appliances, granite counter tops, in unit washer/dryer combinations and hardwood flooring. The buyer plans to continue the renovation process to increase cash flow.
“Lansdale is experiencing a revitalization with several new developments in the pipeline,” adds Bernard. “Investors see the demand for an urban lifestyle in downtown Lansdale. Tenants seek luxury apartments, restaurants, shops and entertainments within a walkable city.”
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About Marcus & Millichap (NYSE: MMI)
With over 1,700 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 2016 with a value of approximately $42.3 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
Just Closed: Garden-Style Apartment Community in Doylestown
Oak Gardens is a 30-unit garden-style apartment community in Doylestown, PA. The asset sold in June 2017 for $3,788,250.
DOYLESTOWN, Pa., June 28, 2017 – Marcus & Millichap (NYSE: MMI), a leading commercial real estate investment services firm with offices throughout the United States and Canada, announced the sale of Oak Gardens, a 30-unit apartment building located in Doylestown, Pa. The asset sold for $3,788,250.
Clarke Talone, first vice president investments, Ridge MacLaren, senior vice president investments, and Andrew Townsend, first vice president investments, all within the firm’s Philadelphia office, had the exclusive listing to market the property on behalf of the seller. The team also procured the buyer.
Oak Gardens is located at 355 North Street in Doylestown, Pa. The three-story, mid-rise building was constructed in 1950, and has undergone vast renovations, including new windows, new kitchens, a new heating system, and common area upgrades. The 30-unit building is comprised of one- and two-bedroom units.
“Oak Gardens generated a tremendous amount of investor interest due its excellent location within walking distance of the heart of Doylestown. The seller had completely renovated the property, positioning it nicely for the new owner,” states Talone. “[The buyer] should continue to experience strong occupancy and rent growth, given the property’s location and condition.”
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About Marcus & Millichap (NYSE: MMI)
With over 1,700 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 2016 with a value of approximately $42.3 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
U.S. Needs 4.6M New Apartments by 2030 to Keep Pace with Demand
“Delayed marriages, an aging population and international immigration are increasing a pressing need for new apartments, to the tune of 4.6 million by 2030,” according to a new study commissioned by the National Multifamily Housing Council (NMHC) and the National Apartment Association (NAA). The growing demand is due to an aging population, immigration, and declining home purchases.