Marcus & Millichap Releases 4th Quarter Multifamily Research Market Report
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
Three Philadelphia MSA Multifamily Assets Sold by Marcus & Millichap for $26 Million
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 3rd, 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.
MacLaren • Talone • Townsend in the News: Philly’s Multifamily Market Can’t Stop, Won’t Stop
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 Releases 3rd Quarter Multifamily Research Market Report
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
Just Closed: 3 Property Portfolio Trades Hands
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.