Monday, June 11, 2018

Top Owners of Apartment Properties near AmerisourceBergen’s Planned HQ in Conshohocken

Local Multifamily Landlords in Line to Benefit from the Pharma Industry Giant’s Relocation

AmerisourceBergen recently announced plans to relocate at least 700 employees from Wayne, PA to a new headquarters at the planned SORA West Development in Conshohocken, PA.

Conshohocken apartment rents are already rising significantly faster than the Philadelphia metropolitan area’s average and the relocation by the area’s largest publicly traded company by revenue will only bring additional momentum to an already thriving submarket.

As the developer of the SORA West project and the owner of at least two other large office properties in Conshohocken, Keystone Property Group is undoubtedly the main beneficiary of AmerisourceBergen’s relocation. However, a number of multifamily owners nearby the SORA West development site also stand to benefit, particularly given the restaurant, rooftop bar, and public space components that are also in planning as part of the project’s retail and hotel components.

The chart below uses CoStar’s radius search functionality to display the top owners (by units) of apartment properties within a one mile radius of the SORA West development site near the corner of W. 1st Ave. and Fayette Street.

The Riverwalk at Millennium, owned by a joint venture between Long Wharf Capital and Scully Co., and The Londonbury, owned by Invesco Advisors, are both high-end apartment communities less than a 15-minute walk from SORA West. They are first in line to benefit from the economic boost that Conshohocken will receive from the relocation. Plymouth Gardens, owned by Samuel Geltman & Company, near Sutcliffe Park is also less than a 20-minute walk from AmerisourceBergen’s new location.

Rents among all three of these properties have already been moving up over the past year, currently averaging $1,580 per month for a one-bedroom unit, up 3.3 percent compared to early June of 2017.

The jobs brought to Conshohocken by the AmerisourceBergen’s relocation and the additional retail amenities that SORA West is likely to eventually spur, can only benefit existing apartment landlords in this already healthy submarket. In particular, if Keystone Property Group decides to pass on including a residential component to SORA West, the viability of which the developer has been assessing over the past several months.
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