(To read more on the multifamily market, click here.)
HATFIELD, PA-Yardley-based BPG Properties Ltd. has acquired Pennfield Manor Apartments, a 264-unit garden-style rental complex at 2700 Elroy Rd. The price is undisclosed, but a broker familiar with the property tells GlobeSt.com it was likely in excess of $18 million, or north of $68,000 per unit.
The 15-building complex on 18 acres was built in 1969, and the seller is a local family and the original developer. Madison Apartment Group, the multifamily operating arm of BPG, will own and manage the asset and is investing approximately $8.5 million, or more than $30,000 a unit, in upgrades.
"We're going to change the entire nature of the property," Steve Pogarsky, Madison's VP of acquisitions, tells GlobeSt.com. The improvements include new roofs, exterior siding, windows, doors and new kitchens and baths. In addition, it is building a clubhouse and pool on the grounds. Pogarsky says the work will take about 18 months.
"This transaction provided us with a unique opportunity to purchase a well-located apartment community at below replacement cost," says Greg Curci, Madison's acquisition manager. He and Pogarsky negotiated the sales transaction.
The property is currently 95% leased at rates ranging from about $545 a month for a one-bedroom to around $800 a month for the largest units, some of which are townhouses. Pogarsky says the rates are "about $200 a month under market." He says the location, just off the Pennsylvania Turnpike, "allows for a short commute to a number of corporations headquartered in Plymouth Meeting, Conshohocken and King of Prussia." It's within five minutes of the Lansdale commuter rail station in "a demographically strong area full of amenities," he adds.
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