Marcus & Millichap Arranges Sale Of 25-Unit Apartment Building
HARRISBURG, PA, July 7, 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 Coba Apartments, a 25-unit apartment property located in Harrisburg, PA, according to Sean Beuche, regional manager of the firm’s Philadelphia office. The asset sold for $2,800,000.
Craig Dunkle, first vice president investments, and Mher Vartanian, associate, in Marcus & Millichap’s Philadelphia office, had the exclusive listing to market the property on behalf of the seller, a private investor. The two investment specialists also secured and represented the buyer, a limited liability company. “We were able to draw a significant amount of interest to this deal, not only from investors, but from lenders and 3rd party managers as well. Ultimately all parties saw the value-add potential here and we are all excited to start executing the business plan,” says Vartanian. Sean Beuche, regional manager and Pennsylvania broker of record, assisted on the closing of this deal.
Coba Apartments is located at 1224 N 3rd St in Harrisburg, PA. The building is a six-story, 22,000 square-foot, mid-rise mixed-use apartment building with one ground floor commercial storefront suite. The apartment unit mix consists of four two-bedroom/1.5 bath units that make up two floors, and 20 one-bedroom/one-bath apartment style units. The property was fully renovated in 2013 from an office building to a Class A apartment building with high end luxury fixtures, a new roof, HVAC, major mechanicals, electrical systems, and full interior fit-outs.
The majority of rents are currently well below market allowing savvy investors the opportunity to significantly increase the NOI. Currently, water, sewer, and trash are not being billed back to the tenants which gives a new owner the ability to setup a tenant reimbursement budget to secure “additional rent”. The property also includes private-leased parking totaling fourteen parking spacing which brings in additional revenue.
Future development in the area includes a new federal courthouse, re-purposing of underutilized state land, and a 12-story tower for Harrisburg University’s primary campus, which is located directly across the street from the subject property. This state-of-the-art facility for Harrisburg University will increase the school’s student body by 1,000 students and expand the degree offerings. Harrisburg University has had great success in attracting students from across the globe with their excellence in STEM related curriculum and maintaining the status of being one of the most affordable private universities in the country.
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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.