Just Closed: 204-Unit Apartment Community in Southern Delaware Trades Hands

Marcus & Millichap is pleased to announce the sale of Carillon Woods – A 204-unit Class A apartment community in Southern Delaware.

PHILADELPHIA, PA, September 2, 2021 – Marcus & Millichap (NYSE: MMI), a leading commercial real estate brokerage firm specializing in investment sales, financing, research and advisory services, announced today the sale of Carillon Woods, a 204-unit apartment property located in Millsboro, DE, according to Sean Beuche, regional manager of the firm’s Philadelphia office.

Clarke Talone, Andrew Townsend, Ridge MacLaren, William McGlone, and Dan Bernard, investment specialists in Marcus & Millichap’s Philadelphia office, had the exclusive listing to market the property on behalf of the seller, a Delaware-based developer.  The buyer, an affiliate of Merion Realty Partners, was secured by Clarke Talone, Andrew Townsend, Ridge MacLaren, William McGlone, and Dan Bernard.

Carillon Woods is located at 34011 Harvard Ave in Millsboro, DE. The 204-unit property is a Class A 2019 construction apartment community located in the strong submarket of Southern Delaware. The excellent location, which is experiencing increased demand as residents leave more dense urban locations, along with rental upside, generated strong buyer activity. The asset closed at 99% of list price.

“The sellers developed a beautiful community in this Sussex County submarket, which is experiencing tremendous growth right now,” said Clarke Talone. “The large units and impressive amenity package helped the property lease up quickly and generate strong rent growth with lease renewals and new leases.”

“Carillon Woods is another example of the heightened demand we have seen for suburban multifamily assets,” added Andrew Townsend. “Our marketing process generated offers from buyers throughout the region looking to grow their portfolio in strong suburban locations such as Millsboro, which offers residents easy access to the beaches, shopping, dining, employment.  Merion Realty Partners executed a smooth transaction and are excited to tap into a new submarket”

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About Marcus & Millichap (NYSE: MMI)

With over 2,000 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 8,954 transactions in 2020 with a value of approximately $43 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 Releases 1st Quarter 2021 Multifamily Market Report for Philadelphia

Marcus & Millichap’s 1st Quarter 2021 Multifamily Market Report for the Philadelphia Metro Area has been released. The market continues to demonstrate relative stability through the health crisis, in contrast to most other major East Coast markets, and is positioned to advance even further this year as the economy improves.

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.

1st Quarter 2021 Multifamily Market Report – Philadelphia

Philadelphia Multifamily Owners Report Strong Rent Collections for April

As we speak with apartment owners, we have been pleased to hear that most communities fared well with regard to April collections in the Philadelphia MSA. This week, we conducted a rent collection survey with a number of our clients. Below are the results:

Based on approximately 37,750 units over 285 communities mainly consisting of Class B and C garden-style and urban walk-up, the average collection rate for the month of April to-date is 90%, with a range of 70%-95%.  

Additionally, below are a few thoughts and observations we have heard from owners in the marketplace:

  • April collections still may improve as the month continues. Especially in C communities, rents are typically slow and may filter in through the latter half of the month. Some owners are hopeful that the arrival of checks from the stimulus program will result in some of the outstanding rent being paid.
  • Most owners, pleasantly surprised with the solid April numbers, have now turned their attention to May. With more time elapsed since the stay-at-home orders, owners are concerned about tenants’ ability to pay May’s rent.
  • Collections among C properties are generally lower than B properties.
  • There are pockets of softness in some communities in Central and Southern New Jersey.
  • Numerous owners reported that March collections was their best month on-record, which shows strength in the underlying fundamentals of multifamily in the region.

The Philadelphia MSA is faring better than many other markets in the nation. Per a recent report published by the National Multifamily Housing Council, April collections are currently 84% nationally, as of April 12.

CLICK HERE TO VIEW THE NMHC REPORT

Please reach out to us with questions, or to learn details of the survey. Stay safe!

Ridge, Andrew, Clarke, and Dan

 

3-27-2020: Special Report | Coronavirus Federal Reserve

The U.S central bank has moved swiftly relative to the Great Recession to combat the economic downturn caused by the COVID-19 pandemic. Actions from the Fed include dropping the federal funds rate to the “zero-bound,” or near zero and employing unlimited quantitative easing that expands the number of asset-backed bonds the Fed can add to its balance sheet.

Click here to view the Special Report from Marcus & Millichap Research Services

3-19-2020: Market Update | Coronavirus Impact on Real Estate

The longest bull market in U.S. history officially came to an end as coronavirus (COVID-19) related fears sent shockwaves through Wall Street. In response, the Fed took decisive action to relieve market anxiety and sustain financial market liquidity. The current volatility in the equities market reinforces the durability of commercial real estate, while record-low interest rates offer a unique financing environment for investors.

Click here to view the Special Report from Marcus & Millichap Research Services

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.

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