Philadelphia-Area Value-Add Properties Change Hands
- Aug 12, 2019
Benefitting from continuing strong interest in the suburban Philadelphia market by out-of-market buyers, two value-add apartment communities in Montgomery and Bucks Counties have changed hands. Maple Grove Apartments and Royersford Gardens, totaling a combined 61 units, present opportunities to add value through renovations undertaken by the new owners.
Rittenhouse Realty Advisors (RRA) brokered the transactions. Each property sold at more than $110,000 per unit and at sub 6.5 percent T-12 cap rates. According to RRA, those figures show the robustness of the current multifamily market, as well as interest in the Philadelphia market from buyers outside that market.
Located at 25 N. 5th St. in a secluded residential district of Royersford, Pa., Royersford Gardens is a 51-year-old apartment community featuring 29 one- and two-bedroom units, the majority with private balconies or patios. The units also feature eat-in kitchens, large closets, wall-to-wall carpet and high-speed Internet access. The pet-friendly community’s leading amenity is a personal move-in concierge. Situated within walking distance of downtown Royersford, the property is also convenient to routes 422 and 29. Royersford Gardens was sold as a value-add opportunity because a renovation by the previous owner had left 69 percent of apartments untouched by improvements.
The buyer of Royersford Gardens is a north New Jersey-based group without previous multifamily experience.
Located at 151 Maple Ave. in Dublin, Pa., Maple Grove Apartments is a 45-year-old community featuring 32 residences in a mix of 12 one-bedroom units and 20 two-bedroom apartments.
The two-story property is located near elementary, middle and high schools, as well as colleges, shopping centers, parks and recreational opportunities and military bases. The potential for rent growth following improvements contributed to Maple Grove Apartments being sold as a value-add community.
Earlier this year, RRA sold the Foxcroft Terrace Apartments, an 82-unit community located in Darby, Pa.