MacLaren • Talone • Townsend Sell 75 Units in Easton
CLOSED December 2015: Lehigh Manor | Easton, PA
EASTON, Pa., Dec. 17, 2015 – Marcus & Millichap (NYSE: MMI), a leading commercial real estate investment services firm with offices throughout the United States and Canada, today announced the sale of Lehigh Manor, a 75-unit garden style apartment complex located in Easton, PA, according to Brenton James Baskin, regional manager of the firm’s Philadelphia office. The asset sold for $4,715,000, over 99 percent of the original list price.
Ridge MacLaren, first vice president investments, Clarke Talone, senior associate, and Andrew Townsend, vice president investments, all in Marcus & Millichap’s Philadelphia office, had the exclusive listing to market the property on behalf of the seller, an out of state limited liability company who had owned the property for approximately 10 years. The buyer, a limited liability company, was also secured by Talone, MacLaren and Townsend. The team conducted over 10 tours and received 6 offers on the 2.48 acre property that closed for approximately $63,000 per unit.
“The amount of interest we saw on this property is evidence that investors searching for yield are willing to look into secondary markets to achieve their investment goals,” Talone said. “Due in part to its proximity to downtown Easton and major thoroughfares Routes 22 and 78, this mainly residential neighborhood has improved solidly over the years.”
Lehigh Manor, 95 percent occupied at the time of sale, is located at 600 E. Canal St in Easton, Pa. within the Lehigh Valley city of Easton and approximately one mile from the “Centre Square” downtown area. The apartment community, which includes 63 two-bedroom units and 12 three-bedroom units, received new windows, updated kitchens, and replaced roof during the seller’s ownership.
“This deal is an indicator that the market for apartment remains white hot, especially when properties are well maintained,” Talone concluded.
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About Marcus & Millichap (NYSE: MMI)
With over 1,500 investment 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 7,600 transactions in 2014 with a value of approximately $33.1 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.
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Marcus & Millichap’s 4th Quarter Apartment Research Market Report has been released. Overall, the outlook of the Philadelphia apartment market remains bright as healthy economic factors continue to drive growth in the Philadelphia economy. The unemployment rate reached the lowest level since the recession, encouraging developers to accelerate the pace of construction. Tight market conditions have spurred steady and consistent rent growth, and both rent and occupancy rates are trending upward.
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Is Now The Time?
One of the sharpest minds in the real estate business, and more specifically the apartment market, believes now is the time to sell: Sam Zell Edges Out of Apartments
The reality is that interest rates are going to rise, and the question is will the value of multifamily properties decrease as a result: Multifamily Prices Could Stall With Interest Rate Hike
Cap rates rise as interest rates rise, just as they have decreased as interest rates have dropped. The following chart illustrates the impact that a 50 bps increase in interest rates would have. In this example, we used an NOI of $500,000 and a cap rate of 6.5%. As you can see, a 50 bps increase in interest rates would result in a decline in value of nearly $550,000, which is more than 7% of the property value.
If you are considering selling in the next 2-3 years, now is the time to consider putting your property on the market in order to maximize value. Call us today at 215-531-7000 to discuss a strategy, and take advantage of our complimentary property valuation.
Complimentary Webcast Invitation: Current Apartment Trends
Apartments in Sixth Year of Performance Run: The Question Everyone Is Asking – What Inning Are We In?
Apartment performance has advanced for 22 quarters, matching the run of the 2000s – Can the trends continue? Join our panel of industry veterans for an informative complimentary webcast, as they translate emerging trends into apartment investment intelligence. Presented by John Sebree (VP/National Director of Marcus & Millichap’s National Multi Housing Group), William E. Hughes (Senior VP of Marcus & Millichap’s Capital Corporation), and John Chang (First VP of Marcus & Millichap’s Research Services).
Trends every apartment investor needs to know:
- Will rising international uncertainty and stock market volatility derail the economy?
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Questions? Contact us at webcasts@marcusmillichap.com or call (925) 953-1735.
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Marcus & Millichap’s 3rd Quarter Apartment Research Market Report has been released. Overall, the outlook of the Philadelphia apartment market remains bright as rising employment fosters stable economic growth, which in turn is strengthening apartment operations. Total employment is on the cusp of recovering all the jobs lost during the recession. These favorable conditions are boosting demand for apartments and rapidly improving performance throughout the metro.
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