Monday, October 18, 2021

UDR Acquires Apartment Complex in King of Prussia Suburbs Outside Philly

 By Cara Smith-Tenta CoStar News

UDR Inc., one of the nation’s largest real estate investment trusts, has acquired an apartment complex in King of Prussia, Pennsylvania, outside Philadelphia.

The Denver-based REIT spent $115 million, or $370,968 per unit, on The Smith at Valley Forge, a 310-unit apartment complex at 580 S. Goddard Blvd. next door to the King of Prussia Town Center, according to CoStar research and UDR’s public filings.

Woodfield Development, a South Carolina-based development firm, sold the property and the property was 92.8% occupied at the time of sale, according to UDR’s filings.

 In UDR's second-quarter earnings release, the company said it was under contract to close on an apartment complex in King of Prussia for $115 million.

UDR paid nearly twice the average price per unit that most buyers pay for Philadelphia apartments. The average multifamily property in the city trades for $192,000 per unit.

UDR is also developing The George Apartments, a 200-unit project at 140 Valley Green Lane on the other side of Goddard Boulevard, which should be complete in the third quarter of 2022, according to the company.

The outlook for Philadelphia’s suburban landlords is positive at the moment. Thanks to record completions of new apartment projects in 2020 and the pandemic’s shock to construction lending, the number of properties under construction in the city’s suburbs has been cut almost in half since late 2019.

That could translate to less demand — and therefore the ability to charge higher rents — for landlords in the suburbs in the coming years.

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