Jackson Cross 1st Quarter 2011 Multi-Family Market Update
Year End 2010 ended on a resounding positive for the Philadelphia regional apartment market with approximately 25 transactions during the year. On an even better note, 2011 shows a continuation of that robust market with approximately 14 transactions closed in the first quarter alone. However, this number included the closing of the six properties in the “PhillyGardens” portfolio to one buyer.
The increase in sales activity and properties currently under contract does confirm that, indeed, there is increasing buyer confidence in the region generally, particularly in apartments. There is still some limited distress occurring within the region. Within the next six months, it is likely that some “short sale” or foreclosure activity will take place resulting in a small number of sales from lenders and/or agencies. Demand, however, is outpacing supply resulting in a strong sellers’ market, with cap rates gradually easing down slightly.
The spring/summer rental market is shaping up to be one of the best in recent years. Many owners have indicated increased leasing activity resulting in higher projected occupancy. This has also translated into modest rent increases—something all owners have been looking forward to. This is certainly a welcome event since operating expenses have been rising in many categories, especially in utilities and contracted services—and let’s not forget the dent in budgets due to another challenging winter of snow and ice. Much of our regional apartment housing stock is over twenty years old and this, too, has resulted in the need for upgrades and capital improvements to remain competitive.
The good news is that there is an abundance of activity. “Green Shoots” are not only coming up on the grounds of your beautifully landscaped communities. We are seeing new construction planned both in the downtown area and several suburban locations.
Jackson Cross Partners, as a real estate service company specializing in owner and tenant properties for both proprietors and developers, and in multi-family investment sales, has demonstrated dedicated commitment to both understanding their clients’ objectives and achieving these through innovative approaches to marketing. Jackson Cross has built a solid foundation of success in their management of office brokerage and industrial brokerage contracts, through strategic planning and analysis, and fruitful negotiations between parties. These results are furthered compacted by Jackson Cross Partners’ experience in understanding and facilitating multi-family investment sales.. Jackson Cross’s focus on satisfying client aims has cemented their reputation as an experienced, knowledgeable and thorough firm, noted in various fields for their expertise. Furthermore, the firm also acts as in a consultative capacity, offering a variety of advisory services, providing clients with a well-trained, resourceful platform from which to make real estate and brokerage decisions. Indeed, Jackson Cross Partners is noted for their increasing prominence in the industry and business community.
For more information about office brokerage, property management, advisory services and multi-family investment, please contact Ann Bailey at abailey@jacksoncross.com.
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