Thursday, July 4, 2019

King of Prussia apartment complex sells for $108M

By Natalie Kostelni  – Reporter, Philadelphia Business Journal

UDR Inc. has acquired Park Square, a 313-unit apartment complex that opened last year in King of Prussia, for $108.5 million, or for $346,600 a unit.

While not reaching the per square foot prices that some Center City properties are getting, the sale price for Park Square is an encouraging sign for those worried the suburbs — particularly King of Prussia — were getting overbuilt with apartments. That may yet still be the case, but strong sales prices indicate that the units being built are getting filled, rents are being paid and properties are stabilizing.

There are 9,314 apartment units in various stages of construction or planning throughout the Philadelphia suburbs, according to a first quarter Berkadia report. Of those, two projects — the Smith at 580 S. Goddard Blvd. and Skye 750 at 750 Moore Road — are in King of Prussia. Between them, they have 568 units that are in the lease-up phase. Other projects planned for King of Prussia include Hanover Village (390 units) and two projects on Renaissance Boulevard (nearly 600 units), according to the report.

King of Prussia isn't alone seeing an abundance of new apartments. Malvern, Exton, Collegeville, Cherry Hill, N.J., and Marlton, N.J., are among the suburban communities where developers have either started or are planning new multifamily construction. In Kennett Square, High Real Estate Group recently broke ground on a $30 million apartment development called the Flats at Kennett. The 175-unit project is being built on 14.4 acres at 603 Millers Hill Rd. It will consist of three buildings totaling 230,000 square feet.

"We saw a specific gap in demand where there was no new apartment supply built in Kennett Square in recent years. We saw an opportunity and growing demand for an upscale project," said Brad Mowbray of High Associates Ltd. "We believe this will cater to growing demand in the millennial market and those downsizing."
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