Apartment sales off to bad start in 2014

Investment sales, in terms of dollar amount, for apartments in the Philadelphia area were flat in 2013 when compared with 2012 — but 2014 is off to a bumpy start.

The reason last year’s sales held steady is because there was a flurry of activity in the fourth quarter of 2012 so investors could beat a capital gains tax increase, according to Real Capital Analytics.

That’s not to say last year wasn’t a strong one for the multifamily market.

Apartment sales totaled a tad more than $1 billion, which is just 5 percent off from 2012 transactions, according to Real Capital data. The average price per unit stood at $102,673, which is a 14 percent increase. In all, 85 properties traded, which is 31 percent more than 2012 and the total number of units — 10,217 —was off by 17 percent.

By comparison, transactions totaled $585.7 million in 2011.

Some notable deals from last year included:

Pearl Properties reaped $152.5 million on the sale of the Granary and 1501 Locust St. in Philadelphia to Lowe Enterprises.

Vantage Properties bought the Marquis in King of Prussia, Pa., for roughly $70 million.

Invesco Real Estate Investment paid $60.9 million for the newly constructed Jefferson Pointe at West Chester in West Chester, Pa.

Kamson Corp. bought Levittown Trace from Emess Management for $26.1 million.

Paradise Property paid $22.8 million for the Glen at Lafayette Hill from AEW Capital Management.

This year is off to an extremely slow start when it comes to multifamily sales. So far two properties have traded for a total of $7.2 million. Those would be Marlton Colonial in Marlton, N.J., and Devon Apartments on Old Lancaster Ave. in Bryn Mawr, Pa. In January 2013, $50.7 million in apartment deals got done and in 2012, $108 million closed. In 20011, $5.8 million transacted.

Source: Philadelphia Business Journal