Friday, September 17, 2021

Rite Aid Corp. to move HQ to Philadelphia Navy Yard

 Natalie Kostelni Reporter Philadelphia Business Journal

Rite Aid Corp. will relocate its headquarters to the Philadelphia Navy Yard, after having spent decades based in Camp Hill.

The company leased 23,500 square feet at 1200 Intrepid Ave. and will open what it is calling an “enterprise headquarters” as part of an effort to redefine how it envisions its employees working as a result of the pandemic.

Rite Aid is moving to a “remote-first work approach for corporate associates, supported by a network of collaboration centers throughout the company’s geographic footprint,” the company said in a statement. “The reimagined workplace model focuses on flexibility for associates, while also creating an official headquarters space in Philadelphia designed specifically for in-person collaboration and company gatherings, rather than office spaces.”

The company has 2,800 corporate employees and a representative from Rite Aid said the number of people working out of the Philadelphia Navy Yard will fluctuate. The move will take place in the first half of 2022.

"It's a vibrant area and it's an exciting place to be," said Brad Ducey, a company spokesman. "It's central and easy for employees, partners, clients."

Rite Aid is No. 132 on the most recent Fortune 500 list. The company reported revenue last year of $24 billion.

Full story: https://tinyurl.com/7kuyj7z7

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Tuesday, September 14, 2021

New $55 Million Multifamily Complex Set To Be Completed by End of 2023

 By Scott Morrill CoStar Research

A joint venture between Method Co. and Cimbra Partners has started construction on a new 142-unit multifamily complex in the East Falls neighborhood of Philadelphia.

The $55 million project is set to include a mix of one- and two-bedroom floor plans with select bi-level duplex units, short-term furnished rental units and 10,450 square feet of ground-level retail space.

Method Co. and Cimbra Partners secured a $30 construction loan for the project from Pacific Western Bank.

The project's amenities are set to include an outdoor pool and lounge, residents’ lounge, game room, private workspaces, fitness center, yoga room and bike room. It will also feature a public art installation in accordance with the city's Percent for Art program.

The project is located along the Schuylkill River at 4300 Ridge Ave. in East Falls, a neighborhood that has a scenic riverfront, burgeoning restaurant scene, regional rail access and walkability.

"The challenge for residential developers in East Falls has never been leasing up projects once they are complete, but rather finding large enough parcels in which to build at scale," said Adrian Ponsen, CoStar's director of market analytics for Philadelphia. "This project has already cleared that hurdle having secured the most visible development site in the neighborhood and will likely further enliven the already up-and-coming retail corridors along Ridge and Midvale Avenues in its backyard."

Method Co. and Cimbra Partners' project is set to be completed by the end of 2023.

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Friday, September 3, 2021

The Remarkable Strength of Lehigh Valley's Multifamily Market

By Ben Atwood CoStar Analytics

It is a good time to be an apartment owner in Pennsylvania's Lehigh Valley.

The market’s year-over-year rent growth sits at a lofty 10.5%, the strongest levels its ever recorded.

Every region within Lehigh is posting above-average gains in the third quarter, with the strongest seen in Central Lehigh County, where year-over-year growth is over 15%.

There are some properties in this area that have been posting jaw-dropping levels of growth. The Allen Gardens, the Bridgeview, the Spring View Apartments and the Woodmont Ridge are all showing year-over-year gains over 20%. In the Tremont Apartments, rents have climbed by more than 40% in the past 12 months.

Suburbs such as Central Lehigh County show the strongest levels of gains, but Lehigh's more-urban areas are also performing well. This is particularly true in downtown Allentown, where year-over-year growth is close to 10%.

That’s impressive for any urban core, but doubly so in Lehigh because these rents aren't being compared to a 2020 rent downturn. That’s something many other cities experienced in 2020, as renters fled to the suburbs.

But downtown Allentown never saw this drop. Its rents kept growing through the coronavirus pandemic and its new arrivals filled within days of opening their doors.

Rapid success in leasing up isn’t limited to just Downtown. Though most recent construction has been in the city, new suburban projects, such as the Dream Lehigh Valley Apartments, also filled within months of opening.

The data shows a near total absence of vacant units across the Lehigh Valley. The market's overall vacancy rate sits at 1.3%, which is also a record, and some of its suburbs are even tighter.

There's very little that's available to immediately rent in institutional assets inside of Northwestern, Southeastern and East Lehigh County. Scour listings on Apartments.com and you will find few units available and even fewer owners offering renters any form of concessions. 

There's also almost nothing underway to disrupt Lehigh's rent-growth, either.

The regions to watch in the coming quarters will be Northwestern Lehigh County and Southeastern Northhampton County. These areas have over 300 units underway, and the rapidity of their lease-up could provide further insight into apartment demand.

Looking at the data now, its hard to believe these projects will struggle at all. Their success could prompt more growth and indeed, Lehigh looks primed for it.

 www.omegare.com

Thursday, September 2, 2021

JV Partners Sell 430K-SF Industrial Asset in Philadelphia Area

 By Ingrid Tunberg Globest.com

Joint-venture partners, ASB Real Estate Investments and Endurance Real Estate Group LLC have sold a 430,373-square-foot industrial building to global real estate operator, EQT Exeter for $41.9 million.

Located at 450 Winks Ln. in Bucks County, PA, the multi-tenant industrial asset is situated within the Expressway 95 Business Park, directly north of Philadelphia, PA.

The sale was made on behalf of ASB Real Estate Investments’ Meridian Real Estate Fund II.

The joint-venture partners purchased the property in December 2018. The asset was originally constructed in 1973.

“The sale represents an excellent execution of our value creation strategy and benefits from the current high demand from institutional investors for industrial properties, driving down cap rates, increasing valuations, and escalating sale prices,” says Brodie Ruland, managing director and co-head of acquisitions at ASB Real Estate Investments.

“Demand of infill industrial assets continues to be a strong market driver in the surrounding counties of suburban Philly. Our diverse tenant roster made this a very desirable industrial opportunity, which was highly competitive and sought after by many buyers.”

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Could take a few years for office space demand to return to normal CNBC (Video)

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