Northeast

As we look toward the end of 2019, multifamily investment sales and mortgage banking transactions in the greater Philadelphia market are at an all-time high. For lifelong Philadelphians, it’s  exciting to witness the area’s longstanding foundation successfully take shape through numerous real estate projects in the city and its suburbs. The Philadelphia multifamily market continues to capture interest from a variety of capital sources. Berkadia’s Philadelphia team alone has $4.3 billion in firm or funded transactions from January through August of this year. Specifically, institutional investors have demonstrated an increased interest in this market, as both national and international players continue to recognize the area’s relative value and sound fundamentals. We expect these trends to continue throughout the remainder of 2019 and into next year, regardless of any major headwinds at the macro-economic level. The driving forces behind Philadelphia’s success include a robust volume of new Class A developments, a more tactful approach to value-add deals, marketplace efficiencies and most of all, a continued demand for multifamily product. The market’s new Class A properties have been well-received in terms of leasing velocity. More construction capital is available than in years past; top-of-the-market rent discovery has generally proven out. In addition, …