Top 5 Multifamily Transactions in Pittsburgh
While investment volume across the metro has fallen sharply since 2017, investors are shifting focus to suburban locations where value-add deals present higher yields.
Following a banner 2017 in Pittsburgh, with nearly $307 million in multifamily transactions, 2018 finished significantly slower, with $156 million of assets trading. Despite the sharp decrease in sales volume, the metro remains attractive to investors, with competitive pricing and advantageous acquisition yields across the board.
An appetite for investment is apparent, particularly in value-add plays. More than 60 percent of the past year’s transactions involved workforce or affordable housing. Additionally, buyers targeted suburban communities—only two of the deals completed in 2018 occurred within Pittsburgh city limits.
The following table highlights the largest confirmed transactions over the 12 months ending in March, with data provided by Yardi Matrix.
5. York Square
Amore Management’s $6 million sale of the 118-unit Class C York Square Apartments to Insight Management Group in January is the metro’s fifth-highest confirmed multifamily deal in the past year. The Farmers and Merchants State Bank of Scotland, S.D., provided the buyer with a five-year, $4.2 million acquisition loan.
The community is located at 275 Braden School Road in the metro’s Beaver submarket, alongside Interstate 376 and less than 40 miles northwest of downtown Pittsburgh. The asset, constructed in 1987, contains studio, one- and two-bedroom apartments, with unit floorplans ranging between 288 and 864 square feet. The property last changed hands in June 1990, when Amore purchased it out of a foreclosure action for $2.3 million.
4. The Heights at Slippery Rock
In May, Ares Management sold The Heights at Slippery Rock, a 100-unit student housing community, to Channing Realty Advisors for $12.2 million. KeyBank provided the buyer with a $13.7 million acquisition and development loan. The asset last sold in July 2016 for $12.6 million, when Ares purchased it from a private investor.
Located at 100 Woodbridge Drive in Slippery Rock, the community is approximately 1 mile north of the Slippery Rock University of Pennsylvania. Constructed in 2008, the property’s 27 buildings contain four-bedroom units with 1,800-square-foot floorplans. Amenities include a 24-hour fitness center, a basketball court, tanning services and a sand volleyball court.
3. Waterford Landing
The Solomon Org.’s $19.9 million acquisition of the 308-unit Waterford Landing from Siara Management was the third-highest confirmed transaction in the Pittsburgh metro during the previous 12 months. The buyer took a $30 million, 15-year Freddie Mac acquisition and development loan from M&T Bank at the time of the sale.
The community is located at 1200 Landing Lane in Moon Township, some 16 miles northwest of central Pittsburgh. The property’s 11 buildings are a stone’s throw from the metro’s international airport and in the vicinity of retail spots. The asset contains one-, two- and three-bedroom units with floorplans between 733 and 1,294 square feet. Amenities include a business center, clubhouse, fitness center and swimming pool.
2. Waterford Nevillewood Apartments
The Solomon Org. made another major Pittsburgh acquisition in the past year with its $41.1 million purchase of the Waterford Nevillewood Apartments from Morgan Communities, the top apartment owner in the market. M&T Bank provided the buyer with a 12-year, $32.4 million loan to finance the deal.
Waterford Nevillewood, which opened in 2000, is positioned at 1900 Tee Court in Presto, roughly 8 miles from downtown Pittsburgh, in the Oakdale submarket. The Class B asset is situated alongside Interstate 79 and is within 2 miles of the Chartiers Valley Shopping Center. The community offers floorplans from 688 to 1,273 square feet, with a range of amenities, from an on-site dry-cleaning service to a dog park. As of March, the asset was 91.8 percent occupied.
1. Ascent 430
The largest multifamily transaction in Pittsburgh over the past year was NRP Group’s $61 million sale of Ascent 430, a 319-unit Class A community, to a joint venture between Graycliff Capital and Buligo Capital Partners. HFF secured a 10-year, $44.9 million CMBS acquisition loan on behalf of the buyer.
The community is located at 430 Ascent Drive in the Hampton Township submarket, some 18 miles north of central Pittsburgh. The property’s 17 buildings, which opened to residents in December 2015, contain a mix of apartments and townhome units, with floorplans ranging from 669 to 1,467 square feet. On-site amenities include a 2,500-square-foot fitness center, a swimming pool, a clubhouse, garage parking and outside storage units. The asset was 97.8 percent occupied as of March.