Philadelphia's Multifamily Boom Has Staying Power. Here's Why.
From Center City to the suburbs, Philadelphia's residential market is as hot as it's been in decades. That's why we're excited to host Bisnow's Philadelphia's Multifamily Take Off at the Sheraton Philadelphia Downtown Hotel on Oct. 27.
Equus Capital Partners VP Greg Curci, who will be a speaker at the event, tells us that the lure of city living is compelling, particularly for those who work Downtown. "But it’s worth remembering that many employment centers still exist well outside the urban metro. In cities such as Philadelphia—as well as Chicago and Atlanta—over 60% of jobs are located 10 to 35 miles outside the CBD, so there's natural apartment demand there as a result. There's also something to be said for the smell of fresh-cut grass and the sounds of birds chirping.”
Recently Equus sold Madison Hunt Club, a 320-unit apartment complex in North Wales, acting on behalf of BPG Investment Partnership VIII LP. Paradise Properties bought the property, which is 96% occupied, for $65M. “Madison Hunt Club’s has an irreplaceable infill location," Greg says. It's less than a half mile from the entrance to the 309 Expressway, which offers access to the Pennsylvania Turnpike and Downtown Philadelphia, as well as the major employment centers of Montgomery and Bucks counties.
Lowe Enterprises VP John Gaghan, who will also be a speaker, tells us that in the near term, apartment occupancy in greater Philadelphia may decline slightly and rent growth may moderate due to supply. "However, the demand for new multifamily will keep up with supply over the long-term," he adds.
Barzilay Development CEO Alon Barzilay, another speaker, tells us that "every developer thinks that they've built the better mouse trap in competing for a limited supply of prospective renters. We're no different." Alon says Barzilay's church conversion and loft warehouse adaptive reuse projects have an advantage because they have fewer than 50 units, but also because the apartments are unique. However, economies play a larger role than design when there's an oversupply in the submarket. Pictured: Barzilay's Sanctuary Lofts, formerly Great Saint Matthew Baptist Church, at 2321-27 Fitzwater St.
BLT Architects principal Michael Ytterberg, who will be one of our moderators, tells us that smaller apartments have indeed become the norm as rents have risen, but Millennials still want to live in desirable neighborhoods. "The neighborhood and the communal spaces in their building are their living spaces," he says.
Hear more about Philadelphia's booming residential market at Philadelphia's Multifamily Take Off at the Sheraton Philadelphia Downtown Hotel at 7:30am on Oct. 27. Sign up here.
