MacLaren • Talone • Townsend Sell Hershey Apartment Community
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
MacLaren • Talone • Townsend Sell Allentown Apartment Community
CLOSED September 2014: Glen Ridge | Allentown, PA
ALLENTOWN, PA, September 30, 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 The Glen Ridge Apartments, a 32-unit apartment property located in Allentown, PA, according to Brenton Baskin, regional manager of the firm’s Philadelphia office. The asset sold for $2,000,000.
Clarke Talone, Ridge MacLaren 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 buyer, a limited liability company, was secured and represented by Clarke Talone, Ridge MacLaren, and Andrew Townsend.
“Glen Ridge was a value-add apartment deal that was delivered free and clear of debt. This is precisely what many investors are looking for in the market today. The ability to increase rents through unit upgrades is a very compelling story and it garnered significant interest here,” stated Talone.
“The buyer recognized the current rents had not been increased in years and were well below market levels. They took advantage of excellent bank financing available in today’s marketplace and should experience strong returns,” added Townsend.
The Glen Ridge Apartments is located at 801 East Turner Street in Allentown, PA. The property is a garden-style apartment community that was constructed in 1968, with a unit mix consisting of 4 studios, 21 two-bedroom units, and 7 three-bedroom units. The property closed within three months of listing.
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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 Sell 92 Units in Pottstown, PA
CLOSED September 2014: Hanover Courts | Pottstown, PA
PHILADELPHIA, September 18, 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 Hanover Courts, a 92-unit apartment property located in Pottstown, PA, according to Brenton Baskin, regional manager of the firm’s Philadelphia office. The asset sold for $3,950,000.
Clarke Talone, Ridge MacLaren and Andrew Townsend, multifamily 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 regional limited liability corporation, was secured and represented by Andrew Townsend, Ridge MacLaren and Clarke Talone.
“Hanover Courts represented a value-add opportunity that many investors look for in today’s market. While the property was operating at above-market vacancy, many investors saw the chance to acquire a garden style apartment community in the 422 corridor with pitched roofs, private entrances, and central air for well below replacement cost,” stated Talone.
“The buyer recognized that with some repositioning and increased marketing efforts, Hanover Courts’ occupancy and rents could be brought more in line with the healthy Pottstown rental market,” added Townsend. “The buyers executed a smooth transaction in a timely manner. This should prove to be strong investment for them.”
Hanover Courts is located at 371 North Hanover Street in Pottstown, PA. The property is a garden-style apartment community that was constructed in 1965, with a unit mix consisting of 16 studios, 52 one-bedroom units, and 24 two-bedroom units. The marketing campaign generated 20 tours and 8 offers.
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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
REITs Close the Door on Underwriters
Wall Street firms this year have been enjoying a surge in fees from a robust crop of stock offerings, but underwriters that focus on public U.S. real estate investment trusts have largely been sitting out of the party.
The reason: Private investors are paying more for commercial property than public companies are willing to pay. As a result, private holders of real estate are more likely to sell property to private investors than through initial public offerings.
Marcus & Millichap Releases 2nd Quarter Apartment Research Market Report
Marcus & Millichap’s 2nd quarter Apartment Research Market Report revealed that despite the harsh winter, Philadelphia’s apartment market is stronger than ever. Job growth in the metro drove hundreds of residents into apartments, resulting in decreased vacancy throughout the region. Overall, vacancy is decreasing, rents are increasing, and the strong performance of the apartment sector is expected to continue in Philadelphia and the surrounding area.
Click the link below to view the full report.