Wednesday, July 6, 2016

Strong rental demand spurs construction start on 276 apartments



The Madison Farms community is off Route 33 and Freemansburg Avenue. / Contributed Photo
For the developers of a mixed-use project in Bethlehem Township, the demand for apartments is outpacing supply, prompting the start of construction on nearly 300 additional units.


The KRE Group and The Silverman Group are the New Jersey developers behind the Madison Farms community off Route 33 and Freemansburg Avenue. Total construction cost for the project is expected to be $140 million, with phase two at $50 million.

“We’ve had a very successful first phase so far; we are approaching the three-quarters lease threshold. We feel it’s the appropriate time to continue into phase two,” said Jeremy Kaplan, chief operating officer for The KRE Group of Bridgewater, N.J. The Silverman Group is based in Short Hills, N.J.

With 75 percent of their apartments leased in the first part of the project, developers said that demand for the community’s luxury apartments will soon outpace supply.

This is partly because of the rental market, which continues to show strong growth in the Greater Lehigh Valley but also can be linked to the emerging retail establishments on the Madison Farms property which contribute to a pedestrian-friendly atmosphere, according to the developers.
“All of the goings-on at the project have created a positive environment for people to live,”
Kaplan said. “We believe the product we are supplying is high-end product.”

The second part of the apartment construction consists of building 276 rental residences with an expected full completion by 2018, Kaplan said.

The company also started site work to get the property ready for construction of housing units on a portion of the land. For this part of the project, KRE and Silverman will develop 132 townhouses, 78 carriage houses and 57 single-family homes, Kaplan said.

The first part of the project delivered 294 apartments and 123,000 square feet of retail space, with another 40,000 under construction.

Source: LVB

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