RRA SELLS TWO APARTMENT COMPLEXES IN SUBURBAN PHILADELPHIA TOTALING 61 UNITS
Rittenhouse Realty Advisors is pleased to announce the sale of two suburban apartment complexes, Royersford Gardens, located at 25 N. 5th Street in Royersford, Montgomery County, and Maple Grove Apartments, located at 151 Maple Avenue in Dublin, Bucks County.
Royersford Gardens consists of twenty-nine units located in a quaint residential neighborhood. Most units have a private balcony or patio. It was sold as a value-add opportunity due to the fact that only 31% of the apartments had been renovated by the previous owner.
Maple Grove Apartments consists of thirty-two two-bedroom units. Prior to sale, the property had been owned and managed by the same owner since the early 1980s. It was also presented as a value-add opportunity, due to the rent growth potential after renovations.
Corey Lonberger, Managing Partner at RRA, stated: “Both properties traded at sub 6.5% T-12 cap rates and north of $110,000 per unit which shows the strength of the multi-family market at this time. With historically low interest rates, values are at all-time highs.”
Mark Duszak, Director at RRA, added: “The Suburban Philadelphia sub-market is extremely robust. This is the second deal this year in Dublin, Bucks County, PA that RRA sold at another record price per unit.”
An increasing number of buyers from outside of the Philadelphia market have been investing in properties in Philadelphia and the surrounding suburbs over the past few years. RRA has been particularly successful in bringing outside capital into the Philadelphia market due to the unique marketing process used to market multi-family listings. Ken Wellar, Managing Partner at RRA, stated: “Our firm is regularly in contact with apartment buyers in New York and Northern New Jersey that are looking for deals in the Philly market. The buyer in the Royersford Gardens transaction was a group out of North Jersey that is new to the multi-family industry.”