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.
Click the link below to view the full report.
Marcus & Millichap Releases 1st Quarter Multifamily Research Market Report
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.
Click the links to below to view the report.
2018 Multifamily North American Investment Forecast – Full Report
2018 Multifamily North American Investment Forecast – Philadelphia Page
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.
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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.
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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
Marcus & Millichap is pleased to announce the sale of Yorkshire Court – 30 units located in Drexel Hill, PA.
DREXEL HILL, 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 Yorkshire Court, a 30-unit apartment building located in Drexel Hill. The asset sold for $1,695,000.
Clarke Talone, First Vice President Investments, Daniel Bernard, Associate, Ridge MacLaren, Senior Vice President Investments, and Andrew Townsend, First Vice President Investments of Marcus & Millichap’s Philadelphia office, had the exclusive listing to market the property on behalf of the seller. Matthew Rosenberg, Director in MMCC’s Philadelphia office, arranged the acquisition financing. The non-recourse loan was structured with a fixed 3.65-percent interest rate over a seven-year term amortized over 30 years.
“The buyer took advantage of favorable financing,” noted Bernard. “The combination of yield and size made this building ideal for a new investor coming into the Philadelphia marketplace.”
Yorkshire Court is located at 740 Burmont Road in Drexel Hill, PA. The 30-unit building consists of six studio units and 24 one-bedroom/one-bath units.
“Yorkshire Court has received significant capital improvements in the last few years, and new ownership is in an excellent position to increase rents with further renovation of the large one-bedroom units,” said Talone.
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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’s Research Services department recently released a special report detailing the new tax plan. The report contains key findings, focusing on how the proposed tax rules may subtly affect commercial real estate.
Click here to view the Special Report
Don’t hesitate to contact us directly if you would like to discuss the report in further detail:
Ridge MacLaren: 215-531-7019 or Ridge.MacLaren@marcusmillichap.com
Clarke Talone: 215-531-7021 or Clarke.Talone@marcusmillichap.com
Andrew Townsend: 215-531-7020 or Andrew.Townsend@marcusmillichap.com
Dan Bernard: 215-531-7022 or Dan.Bernard@marcusmillichap.com
Team member Andrew Townsend was quoted in a Philadelphia Inquirer article published November 29, 2017. Pearl Properties is scaling down its apartment tower project on the Rittenhouse Square-area property where the Boyd Theatre’s ornate auditorium once stood, as Center City faces an abundance of high-end rental housing. Still, the project’s location near Rittenhouse Square bodes well for the project in its shrunken form, said Townsend.
Read more about the new plans for the Boyd Theatre site on Philly.com