Just about a year after opening, Eastside Flats in Malvern,
Pa., has come up for sale.
One estimate pegged the property trading for upwards of $75
million, but that couldn't be confirmed.
Cornerstone Communities of Villanova, Pa., constructed the
roughly $50 million apartment complex, which has 190 units and 27,000 square
feet of retail space. HFF is marketing it.
The development along King Street dramatically changed the
character of the main thoroughfare of this small Chester County community
because of its sheer size — it takes up nearly three city blocks — but also
with an attempt to incorporate design elements that strived to make it fit
naturally into the existing neighborhood. Some would say Cornerstone was
successful in that regard while others contend the scale of Eastside Flats
doesn’t quite fit into the community.
Regardless of the design debate, the project has been a
success on other fronts. Its units are 70 percent leased up and its commercial
space 60 percent occupied by tenants including Kimberton Wholefoods and
Christopher’s restaurant. Even though the harsh winter did slow the pace down a
bit, both the lease up of residential units and the commercial space are on
target to be stabilized by September, said David Della Porta of Cornerstone.
Who is renting units in the complex reflects how multifamily
living has evolved in recent years. Residents run the gamut from wealthy Empty
Nesters to young professionals commuting to companies in Center City or nearby
suburbs. The only demographic absent is couples with very young children. The
complex is within walking distance of the Malvern train station.
Cornerstone has been able to bump rents up twice.
“I think we could go from there,” Della Porta said about
nudging rents up again.
Eli Kahn Development Corp. was a joint venture partner with
Cornerstone on the project.
While Eastside Flats is still being leased up, Della Porta
believes the timing is right to go ahead and sell considering the low interest
rate environment and investor's continued appetite for multifamily properties.
Della Porta declined to comment on how much it could sell for or the estimated
$75 million price tag.
“The smart thing to do during these periods is to be a
seller,” he said. “It was a tough decision. We would have been happy to hold
onto it forever.”
Source: Philadelphia
Business Journal
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