Wednesday, August 30, 2017

Lehigh Valley Can’t Get Enough Of Spec Warehouses

by Steve Lubetkin,
It seems the Lehigh Valley still can’t get enough spec warehouses built before someone leases them up.

Duke Realty Corporation, a REIT specializing in the ownership, management and development of bulk industrial facilities, has leased its recently delivered 628,475-square-foot bulk warehouse and started construction of another million square-foot spec industrial building in 33 Logistics Park, an industrial development located in Easton, PA, on the east side of the Lehigh Valley just off Route 33 at the new four-way diamond interchange at Main Street.

A third-party logistics company that Duke did not identify will occupy 33 Logistics Park 1611, which Duke delivered in early July. 33 Logistics Park 1620, the new building Duke Realty is constructing, will be its third in 33 Logistics Park and adjacent to 1611 and a 1.1 million-square-foot, fully leased bulk warehouse the company delivered in 2016.

“We are pleased to welcome our new tenant to 33 Logistics Park 1611 and excited to start another building in this dynamic distribution park,” said Jeff Palmquist, senior vice president of Duke Realty’s Northeast Region. “With the quick lease-up of both of our bulk warehouses in 33 Logistics Park and ongoing demand for distribution space in the Lehigh Valley, we wanted to be sure that we are well-positioned to offer move-in ready, first-class space to companies with immediate space needs.”

“Our tenant’s customer had outgrown their existing space in the Lehigh Valley, but wanted to remain in the market to effectively service their clients throughout the Northeast. 33 Logistics Center 1611 was an ideal building for them because it gave them the additional space they need, plus keeps them in a location that is strategic to their operations.”

Construction on 33 Logistics Park 1620 has begun, with delivery scheduled for April 2018. In addition to 36-foot-clear height, the cross-dock building will feature LED lights, 120 fully equipped dock doors, four drive-in doors and parking for 245 trailers and 472 automobiles.

“The Lehigh Valley continues to be one of the nation’s most in-demand distribution hubs because of its unrivaled access to the highly populated New York City metropolitan area,” says Palmquist. “The location of 33 Logistics Park 1620 will provide companies ready access to I-78, I-81 and I-80 and is within a day’s drive of more than 40 percent of the population of the United States and Canada.”

33 Logistics Park 1620 will be Duke Realty’s third building in 33 Logistics Park and its fifth in Lehigh Valley. Duke Realty also owns two buildings in West Hills Business Center on the west side of the valley—a 980,000-square-foot bulk warehouse and a 233,000-square-foot bulk warehouse. The company also owns a 73-acre site along I-78 in Bethel Township in Berks County, 10 miles east of the I-78/I-81 split, for development of an up to 832,000-square-foot building.

On a nationwide basis, Duke Realty owns and operates approximately 138 million rentable square feet of industrial assets in 21 key U.S. logistics markets.

Tuesday, August 29, 2017

Schwan Food Co Building Trades in Pottstown to 1031 Investor

by Steve Lubetkin,
207 and 255 South Street in Pottstown, PA trade for an undisclosed amout. The industrial buildings, which total 124,585 SF, were sold to a 1031 investor in New York. The buildings have a long-term lease with SFC Global Supply Chain, an affiliate of The Schwan Food Company.

CRE Q2 Stats Philadelphia Area

by Steve Lubetkin,

Though the office investment market in Philadelphia cooled off quite a bit compared to Q1 with the total sales volume dropping 46%, Yardi’s Commercial Café website says the pace of investment and number of deals remain steady.

Key highlights:

Q2 office sales volume dipped 46% from Q1 but increased 26% year-over-year, from $211 million in Q2 2016 to $265 million

Average price per square foot dropped below a 5-yearaverage to $137 from $163 in Q1, but is on the uptick year-over-year from $103 in Q2 2016

The office transaction that topped the list in the second quarter was the sale of Valley Creek Corporate Center in Exton for $45.3 million to a joint venture between Pembroke Hobson and Ten Capital Management

A total of 5 office construction projects came online this quarter, Brandywine’s FMC Tower at Cira Center South and CHOP’s Roberts Center for Pediatric Research at 700 Schuylkill Avenue, totaling 1,000,000 square feet were the most anticipated ones in Philadelphia

No. Libs Property Sells for $2.25 million

by Steve Lubetkin,

201-11 E. Allen Street sells for $2.25 million. It is a 17,352-square-foot development site in the highly desired, rapidly developing residential area of Northern Liberties. It is just steps from the Delaware River waterfront, public transit, and I-95 access. The site consists of a 15,300 square-foot industrial property and 17,350 square feet of land. It was sold to a private investment group that plans to redevelop it into residential units. The seller was Exceptional Foods which is relocating to a large, modern industrial facility in Pennsauken NJ to accommodate its expansion and enable it to better serve customers.

Friday, August 25, 2017

dd’s Discounts Leases Space in Wilmington

dd’s Discounts, a retailer specializing in discounted clothing, décor and more, has signed a lease for 22,000 square feet at the Merchant's Square shopping center at 4301-4441 Governor Printz Blvd. in Wilmington, DE.

The tenant is expected to move in January 2018.

The 348,356-square-foot shopping center is managed by Allied Properties. Other tenants include Talbots, Williams-Sonoma and Chico’s

EPR Properties President and CEO Greg Silvers on Lifestyle REIT (Video)

Box office softness barely affects our revenues, says lifestyle REIT CEO from CNBC.

Wednesday, August 23, 2017

Top Five Philadelphia Industrial Leases Signed in Q2 2017

The select top industrial lease signed during the first half of 2017 in the Philadelphia market was at Prologis Carlisle - Bldg. I in the Harrisburg Area West Industrial submarket.

Ace Hardware leased 874,126 square feet in the Lebanon Valley Distribution Center in the Lebanon Industrial submarket.

B&H Photo signed a 577,200-square-foot lease in the second quarter at First Florence Logistics Center in the Burlington Industrial submarket. NAI Mertz represented the landlord.

Herman's Warehousing leased 400,000 square feet at Liberty Business Center II - Lot 5 in the Lehigh Valley Industrial submarket. renewed its 346,188-square-foot lease at Pureland VI in the Gloucester County Industrial submarket during the second quarter.

This trend is compared to the U.S. National Industrial select largest lease signings occurring in 2017, which include the 1 million-square-foot lease signed by Lindt at Lambert Farms Logistics Park - Building B1 in the Atlanta market, the 874,126-square-foot deal signed by Ace Hardware at Lebanon Valley Distribution Center in the Philadelphia market and the 857,379-square-foot lease signed by Amazon at Troutdale Logistics Center in the Portland market.

MetLife Real Estate Acquires The Shoppes at English Village in North Wales

MetLife Real Estate has purchased the Shoppes at English Village at 1460 Bethlehem Pike in North Wales, PA for $57 million, or about $552 per square foot, from Stanberry Development LLC.

The 103,188-square-foot shopping center delivered in 2003. Tenants include Trader Joe’s, Talbots and Jos. A. Bank.

Monday, August 21, 2017

Office Properties in Prime Suburban Districts are Getting a Second Look

Suburban office markets with emerging 'urban-style' live-work environments and good transportation access are gaining increasing cachet among investors and cost-conscious office users, according to a new survey of the nation's 25 largest suburban markets.

As office prices and rental rates rise in the nation's CBDs, certain "urban-suburban" districts may offer investors opportunities at lower prices, noting examples in suburban Silicon Valley's Palo Alto, the New Jersey waterfront and even Philadelphia suburb King of Prussia.

Analysis found that office occupancy rates and asking rents in these urban-suburban districts are typically on par with surrounding suburban markets, but received a disproportionate share of tenant demand and construction activity. In more than half of the cases, rents in these suburban submarkets actually outperformed properties in some rival downtown areas.

"Alternatively, emerging urban-suburban markets offer investors and occupiers with longer-term strategies an opportunity to secure space in up-and-coming areas while there are still options to choose from and purchase prices and rents are more affordable."

CoStar research confirmed that, while urban districts generally outperformed their suburban counterparts in occupancy, rent growth, and pricing earlier in the cycle, prime suburban submarkets now appear to offer higher growth potential.

"These submarkets contain institutional-quality product but have yet to record the same level of rent growth, and subsequently, the pricing levels seen in CBDs and secondary business districts," according to CoStar Portfolio Strategy analysts Paul Leonard and Marcos Pareto in a recent white paper analyzing the performance of CBD and suburban office markets.

Prime suburban districts are better positioned to perform over the long term than other suburban areas due to superior demographics and certain location advantages, such as access to major highway interchanges, Leonard and Pareto said.

"Investors looking for the next opportunity in the office market should consider expanding their investment target zone beyond the urban core and into the suburbs," the CoStar analysts said. "However, it is imperative that the investor first choose the right market."

Avison Young, in its Mid-Year 2017 North America and Europe Office Market Report, also picked up on the trend in both the U.S. and Canada of tenants' distinct preference for transit-oriented development (TOD), the emergence of suburban markets with a sense of place as their own urban centers, and the continued growth of co-working and flexible-office-space operators.

"This year we saw co-working and flexible spaces gain market share and we are tracking their impact on office leasing conditions," said Earl Webb, Avison Young's president, U.S. operations. "Landlords are responding to these trends by retrofitting common areas to include tenant amenities and social-gathering spaces."

Lower Rents, Occupancy Bring Growth Potential

According to a new report, emerging urban-suburban submarkets averaged 15.3% vacancy as of first-quarter 2017, compared with 13.8% for established districts. Rents in these emerging submarkets have yet to surpass the overall suburban average and are significantly lower than rents in more established urban-suburban submarkets.

In just over half the markets, however, the average weighted rent for established submarkets was actually higher than downtown rents, including Philadelphia, where the average established rent exceeded CBD rents by more than 10%.

Such emerging submarkets as the sprawling King of Prussia/Valley Forge area, historically known only for its 2.9 million-square-foot King of Prussia Mall owned by Simon Property Group, are seeing a burst of suburban mixed-use "place making" efforts and build-to-suit office construction.

In an example cited in the report, Brandywine Realty Trust earlier this summer opened a 111,000-square-foot, four-story office building at 933 First St., the first new office delivery in King of Prussia in almost a decade. The built-to-suit project mainly occupied by health insurance program provider Highway to Health complements such projects as the recently delivered King of Prussia Town Center.

A flurry of owner-user purchases were reported in the first half of 2017 and more under contract.

While overall leasing activity has continued to be flat across the market, a few notable tenant moves helped shore up fundamentals in the Philadelphia suburbs. For example, Vertex Pharmaceuticals expanded to 180,000 square feet at 2301 Renaissance in King of Prussia.

"Suburban tenants require well-located, high-quality offices to attract talent," Lavery said. "King of Prussia offers that with its proximity to new residential and retail hotspots."

Silicon Valley Has Suburbs?

On the other side of the country, more than 650,000 square feet of office space is under way in Palo Alto, CA, a tony suburb of San Jose in the Silicon Valley. About half of that is the Innovation Curve Technology Park, a four-building project in the Stanford Research Park under development by Sand Hill Property Co. The buildings, a sweeping series of curves, peaks and valleys designed by Form4 Architecture, are slated to be completed over the next year.

About 70 miles east of Silicon Valley in the Roseville submarket of Sacramento, Adventist Health is building a 242,000-squiare-foot, five-story office building slated for delivery next summer.

In the Minneapolis metro's suburban St. Paul submarket, dairy provider Land O'Lakes is building a 155,000-square-foot expansion of its campus in Arden Hill, MN, a project slated for early 2018 delivery.

In Sacramento, Minneapolis/St. Paul, and other metros such as Kansas City and Austin, urban-suburban submarkets account for virtually all suburban office space under construction. On balance, however, the amount of new office construction under way in urban-suburban submarkets is slightly higher than its share of inventory.

950 Pulaski Drive Sells in King of Prussia

 950 Pulaski Drive building sold in King of Prussia, PA, for $8.2 million. The one-story, 40,000 square-foot property, located directly across from the King of Prussia Mall was acquired jointly by Merion PHC Holdings and Moreland Development. The seller was Hemar Realty Co. Currently configured as physicians’ offices, exam rooms and labs, this building most recently housed offices for the Children’s Hospital of Philadelphia and is fully vacant.

CRE Market Weekly Market Wrap - Philadelphia

by Steve Lubetkin,
Suburban office markets that provide an urban-like live-work-play environment are well positioned to capture strong demand from office users. Among the most common attributes of so-called “urban-suburban” submarkets are the presence of abundant retail, office and housing options, as well as employment opportunities, based on a survey in the 25 largest suburban markets. Established urban-suburban submarkets have the added advantage of amenities like entertainment and recreational offerings, restaurants and grocery stores and public transportation access. According to the report, established Philadelphia submarkets include Bala Cynwyd, Conshohocken and the Main Line.

Emerging submarkets in Philadelphia, identified in the report as King of Prussia/Valley Forge, Plymouth Meeting and Exton/West Chester, are more likely to be in transition, with development, construction or renovation – including ongoing or planned public transit projects – shaping dynamics. Notably, emerging submarkets are more likely than established submarkets to have mixed-use projects in the works. Mixed-use projects often serve as a catalyst for additional development in a particular area, spurring interest in the surrounding neighborhood.

The amount of new office construction underway in urban-suburban submarkets is slightly elevated relative to their share of inventory. Emerging submarkets account for 22 percent of total square footage under construction in the top 25 suburban markets (compared to their 20 percent share of total inventory) and established submarkets account for 30 percent (compared to 26 percent of total inventory). Yet in certain metros, these shares are much higher, with urban-suburban submarkets accounting for 100 percent of the suburban office space under construction in Sacramento, Minneapolis/St. Paul, Kansas City and Austin.

Commercial real estate space is starting to see supply: Sam Zell (Video)

Friday, August 18, 2017

Carlisle, PA, Industrial Leading Goodman's $2B US Pipeline

by Steve Lubetkin

Goodman Group has preleased more than one million square feet of logistics space to syncreon at its Goodman Logistics Center in Carlisle, PA.

Goodman has secured a seven-year lease with syncreon, a third party logistics company, on one of two industrial facilities at the Goodman Logistics Center Carlisle. The logistics campus provides direct access to Interstate 81, one of the major transportation networks servicing the Greater Northeast. Syncreon is scheduled to take occupancy of the building in early 2018.

“Goodman Logistics Center Carlisle offers a strategic location and provides access to over 40 percent of the US population, making it highly sought after by customers servicing the New York City, Washington, DC, Baltimore, Philadelphia and Pittsburgh markets,” says Anthony Rozic, CEO of Goodman North America.

“The prelease of this modern logistics center to syncreon is an example of Goodman delivering its Northeast real estate strategy, providing high quality logistics facilities, close to consumers,” says Michael Fahy, syncreon’s head of global accounts for technology. “This facility is a critical part of syncreon’s growth plan in North America. We are very pleased with the speed, level of service and the quality of the build. It’s important that we were able to customize key facility features to optimize our process flow. This facility will be a world-class operation for us and for our technology customers.”

The second logistics facility is currently available for lease and provides an additional 938,236 square feet of available space.

The Goodman Logistics Center Carlisle is one of a number of projects in Goodman’s $2 billion identified US investment pipeline, which will provide 14.9 million square feet of Class A logistics space in the key logistics and industrial markets of Inland Empire, Greater Los Angeles, Northern New Jersey and Central Pennsylvania.

Over the last 12 months, Goodman has completed two million square feet of class A development product in these key logistics markets, with a further 4.3 million square feet currently under construction. This is consistent with Goodman’s ongoing commitment to servicing the needs of its global customer base through the development of modern, well-located properties for long-term ownership.

Monday, August 14, 2017

Monthly Economic Outlook – August 2017 (Video)

Office Leasing Strategies Part I & II (Video)

Part 1
Part 2

Great Valley Commerce Center sells for $73M

Rittenhouse Capital Advisors has successfully arranged the financing for the acquisition of the 356,000 square-foot class-A office building known as the Great Valley Commerce Center. Located in Malvern, PA, the property is fully leased to credit tenants. The property was acquired for $73 million, and Rittenhouse Capital placed the first mortgage financing with a national bank in the amount of $54.25 million, or 74 percent leverage. The loan was structured as a CMBS execution and carries a 10-year term with the interest rate fixed at 4.48 percent. It amortizes over thirty years.

Friday, August 11, 2017

Retail has been under more pressure than any other product type (Video)

from CNBC.

Impact of Abolishing 1031 Exchange - Tell Your Congressman - NAA (Video)

PARQ @ The Square Sells for $39.3M

Capano Residential Properties acquired the 231-unit PARQ @ The Square apartments at 1303 Delaware Ave. in Wilmington, DE from Merion Realty Partners for $39.25 million, or about $170,000 per unit.

The 15-story, 214,411-square-foot multifamily building was built in 1962 and is in the Upper New Castle County submarket.

Thursday, August 10, 2017

5-acre parcel sold at Exton Square Mall

By Brian McCullough, Daily Local News

The owner of the Exton Square Mall announced Wednesday it has agreed to sell five acres of the property to a developer of multi-family dwellings.

PREIT – Pennsylvania Real Estate Investment Trust – announced the agreement as part of its second quarter report.

The sale of the Exton property is one of three the Philadelphia-based mall operator announced that is expected to bring the company about $75 million. The company did not break out the price it is receiving in each sale.

The announced transactions are:
• 801 Market Office condominium in Philadelphia – a purchase and sale agreement has been executed with a significant non-refundable deposit. Closing is anticipated during the third quarter.

• Logan Valley Mall in Altoona – a purchase and sale agreement has been executed with a significant non-refundable deposit and closing anticipated during the third quarter.

• Exton Square – a 4.9 acre land parcel is under agreement of sale with a multi-family developer. Closing is expected to occur once entitlements are obtained by the buyer, PREIT said in a statement Wednesday.

PREIT spokeswoman Heather Crowell did not respond to inquiries about the exact location of the Exton property. A person familiar with the project said the acreage is part of the former Kmart parcel that is located between Route 100 and the mall.

Part of that parcel is being used for a Whole Foods grocery store. After months of inactivity, it appears work is taking place inside the fenced-off property.

Neither PREIT nor Whole Foods responded to a request for an update on the much anticipated upscale grocery store.

“This is another example of our ability to execute in a challenging environment,” said Joseph F. Coradino, CEO of PREIT, of the three transactions. “This is a critical step in the further transformation of PREIT into a top-tier mall company. As the retail industry evolves, there are many opportunities to improve the shopping environment, and raising capital through the sale of non-core properties provides the perfect vehicle for creating value for our shareholders.”

PREIT on Wednesday reported second quarter results. The company said its net operating income increased by 1.6 percent for wholly owned property.

Same store net operating income was reduced by $1.6 million as a result of bankruptcies and $300,000 as a result of co-tenancy claims.

Sales per square foot reached $468, a 2.2 percent increase over the prior year.

Non-anchor leased space for malls was 91.9 percent, 190 basis points over quarter end physical occupancy.

“It is clear that in this constantly evolving and sometimes challenging retail environment, our portfolio of high quality properties located in compelling markets is improving in spite of the headwinds,” Coradino said in the report.

SICOM Leases 92,000 SF at The Pinnacle Lansdale

SICOM, a technology provider to the restaurant industry, has signed an eight-year office lease for 92,104 square feet in The Pinnacle building at 1684 S. Broad St. in Lansdale, PA.

The three-story, 344,280-square-foot office building was constructed in 1999 in the West Montgomery County submarket. SICOM's lease includes a part of the first and third floors in the building, the remainder of which is vacant and available for lease from 43,470 square feet up to 252,176 contiguous square feet in the building.

Greenfield Partners Secures $90.5M Loan on Fort Washington Office Bldg

Greenfield Partners LLC has secured a $90.5 million loan on its Fort Washington Technology Center building located at 1100-1140 Virginia Dr. in Fort Washington, PA.

Square Mile Capital Management LLC originated the loan. The funds will satisfy existing debt as well as future property upgrades and leasing costs.

The 751,143-square-foot office building was constructed in 1964 and was last renovated in 2007. Building amenities include on-site management, fitness center and basketball court.

Tuesday, August 8, 2017

Vanguard sells building in Wayne

by Natalie Kostelni Reporter
Philadelphia Business Journal

Vanguard Group has sold an office building it occupies at 455 Devon Park Drive in Wayne, Pa., for around $15 million.
The mutual fund company bought the 130,000-square-foot building in 1999 and is one of the few properties it owns outside of its main Malvern, Pa., campus where it is headquartered. E. Kahn Development Corp. bought the property. Jim Galbally of JLL arranged the transaction.

Even though Vanguard sold the property, it will remain in the space.

“As part of the agreement, we’ll continue to lease the building while we take some time to assess the right future location for the crew that currently work there,” said Arianna Stefanoni Sherlock, Vanguard spokeswoman.

It’s not totally unusual for Vanguard to occupy space off of its main campus. In 2008, it occupied 151 S. Warner Road, a 90,000-square-foot office building. At the time, the company needed some extra space while a new building called Three Quarry Ridge was being constructed. Vanguard vacated the Warner Road space in 2014.

Now Vanguard is in the early stages of planning new buildings in Malvern to accommodate its continued growth. The company has said it would initially construct one structure that would be between 180,000 and 240,000 square feet.

Full story:

CBRE CEO talks organic growth overseas in the wake of Brexit (Video)

from CNBC.

Cabot Properties Acquires Five Buildings in Lehigh County

High Street Realty Company LLC sold a five-building industrial portfolio in Allentown and Fogelsville, PA for $21.3 million, or about $79 per square foot, to Cabot Properties, Inc.

Totaling 271,045 square feet of industrial space, the portfolio includes 964, 966 and 999 Postal Rd in Allentown and 7331 and 7350 William Ave. in Fogelsville. Collectively, the properties are 92 percent occupied at the time of sale to multiple tenants including W.B. Mason and Air Products & Chemicals, Inc.

Monday, August 7, 2017

Plans to Rethink America’s Malls (Video)

Self-Storage Cap Rates, Financing & Investment Strategies (Video)

Philadelphia's Industrial Vacancy Increases to 5.9%

The Philadelphia Industrial market ended the second quarter 2017 with a vacancy rate of 5.9%.

The vacancy rate was up over the previous quarter, with net absorption totaling positive 1,782,519 square feet in the second quarter. That compares to positive 9,931,174 square feet in the first quarter 2017. Vacant sublease space increased in the quarter, ending the quarter at 1,193,014 square feet.

The Flex building market recorded net absorption of positive 428,315 square feet while the Warehouse building market recorded net absorption of positive 1,354,204 square feet in the second quarter 2017.

Tenants moving into large blocks of space in 2017 include: Uline moving into 1,070,000 square feet at Liberty Business Center III - Bldg 1, Mattel moving into 1,002,000 square feet at 575 Old Forge Rd, and PepsiCo moving into 502,754 square feet at 545 Oak Hill Rd.

Rental rates ended the second quarter at $4.84, a decrease over the previous quarter.

A total of 14 buildings delivered to the market in the quarter totaling 5,075,807 square feet, with 15,226,755 square feet still under construction at the end of the quarter.

This trend is compared to the U.S. National Industrial vacancy rate, which decreased to 5.1% from the previous quarter, with net absorption positive 71.76 million square feet in the second quarter. Average rental rates increased to $6.22, and 537 industrial buildings delivered this quarter totaling more than 64.4 million square feet, with almost 272.4 million square feet still under construction.

Three Most Active Multifamily Submarkets in Philadelphia

Philadelphia apartment construction continues to be top-heavy in the city’s urban core, but a neighboring submarket’s development burst speaks to the continually emerging competition in Philly’s premier first-ring suburbs.

Center City Outpaces Nearest Suburbs in New Multifamily Development at 3-to-1

CoStar Market Analytics data through the second quarter, 2017 shows that Center City and bordering Art Museum / Northern Liberties submarkets had well over 2,500 units under construction - with Center City hosting more than 2,000 of the new units.

These two submarkets have remained atop the development rankings for most of the last three years, and roughly 30 new apartment communities - totaling more than 3,000 units - have delivered between the two from 2014 through June 2017. The overall average asking rent per square foot on these delivered units is over $2.60, while studios in this group are pushing toward $3.50 per square foot.

Job Rich Suburbs Attracting Renters and Developers Alike

While Center City has long been a stalwart demand base for landlords, and Art Museum/Northern Liberties has emerged over the last decade given the gentrification and development in NoLibs and Fishtown, development has picked up steadily of late in Philadelphia’s job-rich, centrally located suburbs.

Main Line, with heavy residential rental nodes in Ardmore, Bala Cynwyd and Wayne neighborhoods, started getting new stock in 2014 after nearly a decade without major deliveries. Strong leasing and renewal performance has kept developers eager, and as of the second quarter, Main Line had the second most units under construction in the entire metro area. Another 1,300 units are proposed for the submarket, with anticipated delivery dates between 2018-2020.

Housing Prices Make Renting an Attractive Option for Many Area Families

A mid-point destination for renters between the city and employment nodes like Conshohocken, King of Prussia, and Plymouth Meeting, the Main Line is known for its opulent subdivisions and outstanding school systems. It’s also known for high-six and low-seven figure single-family home price tags, and even with many of the new two- and three-bedroom households costing between $2,300-$3,500 per month, those prices are well below what a full PITI payment would be for the majority of the area’s homes. Not surprisingly, studio units are next to non-existent in newer builds found in Main Line.

Radnor Property Group Sells 3737 Chestnut Apts

Korman Residential Properties and The Carlyle Group have acquired the 3737 Chestnut apartment building at 3737 Chestnut St. in Philadelphia, PA for $118 million, or about $428,000 per unit, from Radnor Property Group.

Radnor delivered the 25-story, 216,912-square-foot property in August 2015 at a cost of $92.5 million. Today the 276-unit multifamily asset is fully leased.