Performance prospects for the Philadelphia apartment sector remain positive. At mid-year, vacancy was in the low five percent range despite only modest job growth in the first two quarters. Since then, a steady flow of residents moving into apartments has enabled owners to reduce or maintain vacancy and improve asset values. By the end of the year, rental property completions will have risen after several years of limited construction. The current upswing in development will minimally affect market-wide vacancy and rents, and the impact of the new units will be contained to local areas. In Center City, for example, minor vacancy swings and more frequent concession use will occur as new projects are leased up. Generally, strong conditions in the market are encouraging developers and building will progress at a steady pace in the next two years. Nonetheless, the new construction cycle hardly looks forbidding, as the units permitted over the past year would expand multifamily stock only 1.1 percent if all those projects were built. Year to date, 879 new rental units have been placed in service in Philadelphia and it looks like developers will complete 2,600 apartments in 2013, which is up 1,238 units over last year, but …
NEW YORK CITY— Pontiac Land Group of Singapore has joined Hines and Goldman Sachs in the ownership of 53 W. 53rd Street, a 72-story residential condominium development adjacent to the Museum of Modern Art (MoMA) in New York City. In addition to its equity investment, Pontiac Land secured $860 million of construction financing to be funded by a consortium of Asian banks. The 750,000-square-foot tower, designed by Pritzker Prize-winning architect Jean Nouvel, will house 145 high-end condominium residences, designed by architect Thierry Despont. Additionally, the building’s lower floors will include 36,000 square feet of new exhibition spaces distributed over three floors, designed for MoMA by architects Diller Scofidio + Renfro. Hines and Goldman Sachs acquired the 18,000-square-foot site, located between 53rd and 54th streets just west of MoMA, for $125 million from the museum in 2007. Construction is slated to begin in mid-2014, with initial occupancy expected in late 2018.
PITTSBURGH — NorthMarq Capital has arranged a $10.8 million loan for the refinancing of McKee Place Apartments, a 114-unit student housing community located near the University of Pittsburgh. Financing was based on a 10-year term and a 30-year amortization schedule. Ed Brown, managing director at NorthMarq’s Philadelphia regional office, arranged the financing for the borrower through its relationship with a CMBS lender.
PORTLAND, MAINE — Marcus & Millichap Capital Corp. has arranged $2.6 million in construction financing for a retail development in Portland, the largest city in Maine. Financing was based on a 10-year term and a 20-year amortization schedule. The construction loan converts to permanent financing after two years. Starbucks Coffee and Mattress Firm will occupy the retail property. The loan will convert to non-recourse financing once the tenants take occupancy.
BLUE BELL, PA. — US Realty Capital (USRC), has arranged a $2.4 million fixed-rate bridge loan for a 47,000-square-foot, Class B office complex in Blue Bell, a northern suburb of Philadelphia. The complex includes two three-story office condominium buildings. USRC arranged the non-recourse, three-year loan, which includes two 12-month extension options and is interest only, through a national bridge lender. The property was 55 percent occupied at closing. Robert A.C. Jacoby, managing partner in USRC’s Philadelphia office, originated the loan.
NEW YORK CITY — Brixmor, which had been planning to go public since Blackstone Group acquired it in 2011, began trading Wednesday on the New York Stock Exchange under the symbol “BRX” as part of an $825 million initial public offering (IPO). Brixmor’s stock price, which began trading at $20 per share, finished the day at $20.57 per share, a 2.85 percent increase. The retail landlord is selling 41.25 million shares, up from 37.5 million shares the company originally plan to offer as part of the IPO. The offering is expected to close on Nov. 4. With more than 520 properties in its portfolio, Brixmor has no immediate plans to expand. Michael Carroll, CEO of New York-based Brixmor, says the company’s investors support Brixmor’s strategy to continue to invest in its existing portfolio.
CARLISLE, PA. — Dermody Properties, in partnership with Pacific Coast Capital Partners LLC (PCCP), has purchased 107 acres at Ames Drive in Carlisle, a southwest suburb of Harrisburg. The site will be the location of a two-building, master-planned industrial park, known as LogistiCenter Carlisle, totaling 1.3 million square feet. The first building, which is 700,000 square feet, is available for leasing. Dermody Properties says it will begin construction on a 602,250-square-foot building based upon the leasing progress of the existing building. LogistiCenter Carlisle is located one mile off Interstate 81. Dermody Properties is serving as the industrial developer and operating partner, and PCCP is serving as financial partner on the project.
BLOOMFIELD, N.J — The New Jersey Housing and Mortgage Finance Agency has awarded Federal Low-Income Housing Tax Credits to Community Investment Strategies Inc. for an 82-unit affordable housing project in metro Newark. The tax credit will result in about $12.7 million of equity for the Heritage Village at Bloomfield development. The project also was awarded $5 million in funding under the Community Development Block Grant Disaster Recovery Action Plan Sandy Disaster Recovery Program. Located on the corner of Franklin Street and Municipal Plaza in Bloomfield, Heritage Village at Bloomfield will feature energy-efficient and handicapped-accessible units for residents 55 years of age and older. The community will include 74 one-bedroom and eight two-bedroom apartments, as well as a 1,800-square-foot community center. Construction of the development is slated to begin next spring.
ELMWOOD PARK, N.J. — Marcus & Millichap has arranged the $1.5 million sale of three United States Postal Service branches located in Normandy Beach, Roselle Park and Florence. Michael Lombardi, director of Marcus & Millichap’s net leased properties group, and Julienne Pape, an associate, marketed the three properties as part of a larger portfolio of post offices on behalf of the seller, a private investor. Lombardi and Pape also represented the buyer in the sale of the Normandy Beach post offices.
BOSTON — The Community Builders Inc. (TCB) has celebrated the grand opening of 225 Centre, the $52 million first phase of the 14-building, $250 million redevelopment in Boston. The project, which is located in the Jackson Square community, will reconnect Boston’s Jamaica Plain and Roxbury neighborhoods. The 225 Centre apartment community features 103 apartments, including 35 affordable units, more than 16,000 square feet of commercial space and an 86-space underground parking garage. The project financing included $2.3 million in state-issued, low-income housing tax credits, $2 million in Department of Housing and Community Development program subsidies and $503,988 in federal low-income housing tax credits. 225 Centre is a joint venture between TCB and Mitchell Properties.