PHILADELPHIA, PA–(February 18, 2016) – Rittenhouse Realty Advisors is pleased to announce the sale of 107 units and 16 income producing garages along the 422 corridor in Suburban Philadelphia. The sales consisted of three separate properties with three separate buyers and sellers orchestrated by the Rittenhouse Realty Advisors team of managing partners, Corey Lonberger and Ken Wellar, director, Mark Duszak and associate, Steve Miceli.
The sales included a 60 unit property in Pottstown that sold to an owner/operator from Northern New Jersey. “This was the second purchase in Pottstown for this group in the last 12 months, enabling them to benefit from economies of scale. They were willing to pay a bit more than other investors because of that,” stated Mark Duszak.
The second property, also in Pottstown, was purchased by a buyer from the Baltimore/D.C. market. This was their first purchase in this market. Both properties traded at sub 7% T-12 CAP Rates. “The second property was sold by a larger local owner/operator who was looking to dispose of a few smaller properties that no longer fit their current hold criteria,” said Steve Miceli.
The third property is a recently renovated 16 unit apartment building located in the borough of Phoenixville. This property sold for north of $150,000 per unit; the buyer here was a local owner/operator looking for stabilized “A” product type in a suburban location.
All three properties sold for north of $6,600,000 in total consideration. “These three sales show RRA’s ability to reach buyers from outside of the Philadelphia MSA via our unique marketing process, to ensure our clients are obtaining maximum value for their properties,” stated Corey Lonberger. Ken Wellar added, “These sales show the strength of the market at this time. To achieve these CAP Rates for our sellers demonstrates just how much demand there is for apartment properties in the suburban Philadelphia market.”