Team News

Marcus & Millichap’s 3rd Quarter Multifamily Research Market Report for the Philadelphia Metro Area has been released. High rents in the urban core are prompting more renters to look toward the suburbs, improving performance in those areas. The high demand in suburban submarkets is luring more developers away from the downtown, to areas that have not seen as many deliveries in recent years.

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.

Marcus & Millichap Releases 3rd Quarter Multifamily Research Market Report

MacLaren · Talone · Townsend’s sale of the Residence at Overbrook has been featured in the most recent issue of The Apartment Report, a national publication that is compiled by Crittenden Research. The Residence at Overbrook is a 127-unit property in Philadelphia that was formerly master-leased to Saint Joseph’s University. The sale of the property for $13M is especially notable, as the property was vacant following the expiration of the master lease. The buyer now has the opportunity to perform value-add renovations while the property is vacant.

Per Crittenden Research’s website, The Apartment Report provides “thorough updates of the busiest developers, buyers, management firms, lenders and equity partners. Amenities, marketing, investment and lending operations, acquisitions, development, and location trends are just some of the key areas The Apartment Report exhaustively covers–Information that’s all obtained first hand by Crittenden’s Multifamily Reporter.”

Click here to view the most recent issue of The Apartment Report.

Marcus & Millichap is pleased to announce the sale of Residence at Overbrook – A 127-unit property in the Overbrook Farms neighborhood of Philadelphia.

PHILADELPHIA, June 27, 2018 – Marcus & Millichap (NYSE: MMI), a leading commercial real estate investment services firm with offices throughout the United States and Canada, announced the sale of Residence at Overbrook, a 127-unit apartment complex featuring studio, one-bedroom, and two-bedroom units, located in the Overbrook Farms neighborhood of Philadelphia, Pa. The asset sold for $13,026,478, equating to about $102,570 per unit.

Clarke Talone, Andrew Townsend, and Ridge MacLaren, 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, who owned the property since 2014. The buyer, a local private developer with experience and a track record in the neighborhood, was secured and represented by Talone, MacLaren and Townsend.

“This property presented a unique investment opportunity, as the building’s master-lease to Saint Joseph’s University expired in May 2018,” said Talone. “Many investors were attracted by the ability to immediately renovate units in a building with scale in a strong submarket. The building will generate tenant demand from the thriving submarket, with demand drivers such as Saint Joseph’s University, Lankenau Hospital, and the concentration of office buildings in nearby Bala Cynwyd.”

Residence at Overbrook is located at 6358 Lancaster Avenue and 6312 Sherwood Road in Philadelphia, Pa. Situated near Saint Joseph’s University and City Avenue, the property is just a short walk from the Overbrook stop on SEPTA’s Paoli-Thorndale regional rail line.

The seller recently put capital improvements in the property, including updating the lobbies and hallways, and upgrading more than 20 bathrooms. Numerous properties in the area have capitalized on the area’s demand, and are achieving higher rents after undergoing renovation programs.

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About Marcus & Millichap (NYSE: MMI)

With over 1,800 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 2017 with a value of approximately $42.2 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’s 2nd Quarter Multifamily Research Market Report for the Philadelphia Metro Area has been released. Healthy rental demand has prompted substantial downtown construction, as vacancy moves up. Rents are on the rise, especially among luxury spaces.

Click the link below to view the full report.

Marcus & Millichap Releases 2nd Quarter Multifamily Research Market Report

Marcus & Millichap is pleased to announce the sale of the Fishtown Portfolio – 15 units in the Fishtown neighborhood of Philadelphia.

PHILADELPHIA, Pa, April 30, 2018 – 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 Fishtown Portfolio, a 15-unit apartment portfolio located in Philadelphia, Pa. The asset sold for $1,528,000, equating to more than $100,000 per unit.

Andrew Townsend, Clarke Talone, Joseph Sutow and Ridge MacLaren, investment specialists in Marcus & Millichap’s Philadelphia office, had the exclusive listing to market the portfolio on behalf of the seller, who owned the properties for more than a decade. With four offers on the table, ultimately the buyer was a private real estate investment group, who was secured and represented by Sutow, Townsend, Talone and MacLaren, as well.

“New ownership plans to initiate a renovation plan and upgrade the units to meet market rent in the neighborhood,” said Sutow. “Located in an area with considerable rent growth, there is a tremendous opportunity to enhance value and increase revenue.”

Fishtown Portfolio is located at 1417-1419 East Columbia Avenue and 1243 East Susquehanna Avenue in Philadelphia, Pa. The Fishtown neighborhood has emerged as Philadelphia’s epicenter of action with a wide selection of bars, restaurants, music venues, and galleries. Once known as a gritty pocket of the city, Fishtown now has a forward-thinking mentality led by its young professionals and long-time residents. Accessibility to subways and highways makes properties in this neighborhood popular for commuters seeking a lower cost of living than Center City.

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About Marcus & Millichap (NYSE: MMI)

With over 1,800 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 2017 with a value of approximately $42.2 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 is pleased to announce the sale of Grey Friars Terrace – 78 units located in Chalfont, Pa.

CHALFONT, Pa, April 20, 2018 – Marcus & Millichap (NYSE: MMI), a leading commercial real estate investment services firm with offices throughout the United States and Canada, announced the sale of Grey Friars at Chalfont, an apartment complex comprised of 26 one-bedroom/one-bath units, and 52 two-bedroom/one-bath units located in Chalfont, Pa. The asset sold for $10,692,000.

Ridge MacLaren, Clarke Talone, Andrew Townsend, and Daniel Bernard, investment specialists in Marcus & Millichap’s Philadelphia office, facilitated the transaction and represented the buyer, a limited liability company.

“Presently, there is limited quality inventory in the Bucks County market,” said Talone. “Buyers remain aggressive and are extremely eager to deploy capital.”

Grey Friars at Chalfont is located at 4106 Grey Friars Terrace in Chalfont, Pa. The 78-unit garden-style apartment complex is comprised of eight 2-story buildings set on 8.89 acres.

“The buyer intends to implement a unit renovation plan,” added Talone. “Due to the strength of the location, there is significant rental upside with upgraded kitchens and bathrooms.”

Chalfont is a very desirable location in Bucks County, with easy access to highways US 202 and PA 309. Regional rail service into Center City Philadelphia is located less than five minutes away at Chalfont Station.

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About Marcus & Millichap (NYSE: MMI)

With over 1,800 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 2017 with a value of approximately $42.2 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’s 1st Quarter Multifamily Research Market Report for the Philadelphia Metro Area has been released. The city of Philadelphia’s favorable outlook, influenced by recent corporate expansions and a collection of well-regarded universities, continues to draw investors to the market. Fewer listings are prompting an increase in syndicate activity among the buyer pool as investors pull capital to finalize deals, contributing to a general appreciation in sales prices.

Marcus & Millichap’s 2018 Multifamily North American Investment Forecast has been released. The report forecasts that rents will maintain their ascension trend, while regional investors will be attracted by higher yields. Rent growth will persist while widespread construction places upward pressure on vacancy. Additionally, investors will cast a wider net, targeting older properties. For more information about this, along with additional valuable market insight, take a look at the 2018 Multifamily North American Investment Forecast. Call us today to discuss how we can assist you with your strategy.

Existing single-family home sales increased a modest 1 percent over 2017 as limited for-sale inventory kept the market from gaining traction. While many of the factors contributing to a restriction in sales velocity remain the same, changes to the tax code remove some of the incentives to homeownership, and anticipated interest rate increases this spring will bring additional challenges to the future of the housing market.

The increases in the standard deduction to $12,000 and $24,000 for couples means fewer homeowners will realize a benefit from itemizing deductions on their taxes. The threshold home price at which itemizing offers the ability to lower a married couple’s tax liability has increased from about $200,000 to above $400,000, which is well above the median home price in most metros. Concerns about affordability and low savings rates will continue to drive demand for apartments as first-time homebuyers are largely affected.

Stronger economic growth could counter some challenges. Tax savings will flow through to individual tax payers, increasing take-home pay. While some will use this discretionary income to boost consumption, others may increase savings to purchase homes. Sales of new homes could help offset purchasing in the existing single-family home market. Last year, sales of new homes gained more traction, ending the year up 14.1 percent from 2016. However, the number of these homes that have yet to start construction continues to rise, reaching 32.6 percent of new-home sales in December. A construction backlog will benefit the rental market as those purchasing new homes extend stays in apartments.

Developing Trends:

• First-time homebuyers accounted for 32 percent of purchases in December. The rate has bounced around the high-20 percent to the low-30 percent span since mid-2010 and will likely stay in this range through 2018, remaining well below the 41 percent long-term average.
• The median existing single-family home price increased 5.8 percent over the last year to $248,100 in December, while the median new home price reached $331,400 after rising 2.5 percent annually. High land and materials costs, as well as a labor shortage, keep building concentrated in higher-end homes, and the spread between existing home prices and new home prices remains at one of its widest points.
• In 2018, apartment completions will ease from the 380,000 units delivered in 2017 to 335,000 apartments. About half of all additions are concentrated in 10 markets, and vacancy will remain tight throughout much of the country this year

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© 2018 Marcus & Millichap. All Rights Reserved.

The Research Brief Blog from Marcus & Millichap offers timely insight and expertise into the rapidly changing investment real-estate industry. The Research Brief is published by top industry professionals, showcasing time-sensitive information and valuable analysis.

The information contained herein was obtained from sources deemed reliable. Every effort was made to obtain complete and accurate information; however, no representation, warranty or guarantee to the accuracy, express or implied, is made.

Marcus & Millichap is pleased to announce the sale of Dynasty Court – 56 units located in Center City Philadelphia.

Philadelphia, PA January 29, 2018 – 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 Dynasty Court Apartments, a 56-unit apartment building located at 1003-1011 Race Street in Center City Philadelphia’s Chinatown neighborhood. The property consists of 56 units, five retail storefronts on Race Street, and 21 parking spaces. The asset sold for $16,600,000.

Andrew Townsend, first vice president investments, Ridge MacLaren, senior vice president investments and Clarke Talone, first vice president investments, all of Marcus & Millichap’s Philadelphia office, had the exclusive listing to market the property on behalf of the seller, a local partnership who developed the property in 1982. Townsend, MacLaren, Talone, and Philip Sharrow, associate in Marcus & Millichap’s Philadelphia office, represented the buyer, a local development company.

The property’s stellar location on Race Street in the heart of Center City Philadelphia drew the interest of investors from across the country.

“We had a tremendous amount of interest in this property due to the long-term intrinsic value of the asset,” said Townsend. “Dynasty Court is one of the largest multifamily properties in Chinatown, and over half the units are large multi-level townhouses.”

Townsend continued, “Our marketing process generated numerous offers from the local community and as far away as California. Ultimately, the buyer stepped up and paid over the asking price to secure the deal.”

Matthew Rosenberg, director in Marcus & Millichap Capital Corp.’s Philadelphia office, arranged the acquisition financing.

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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