Three Philadelphia MSA Multifamily Assets Sold by Marcus & Millichap for $26 Million
PHILADELPHIA, Sept. 16, 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 Marcus & Millichap’s 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 St., 16 apartments and two 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 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.