(Read more on the multifamily market.)
HARRISBURG, PA-Korman Communities has sold River Plaza Apartments, a 274-unit high-rise multifamily complex at 2311 N. Front St., to Richmond, VA-based Real Estate Value Advisors. The price was $15.5 million, which translates to $56,569 a unit.
Eric Mattson, VP of Newtown Square-based GMH Capital Partners' investment service division, represented Korman. Bart Anderson of the Harrisburg office of CB Richard Ellis introduced the property to the buyer. Real Estate Value Advisors was represented in house.
The complex's location along the bank of the Susquehanna River and its historically strong occupancy were important appeals, Mattson says. "It offers views of the river, the CBD and surrounding mountain ranges," he adds. Considered a local landmark, the complex was built in 1956 and completely renovated in 1999. Mattson tells GlobeSt.com that Korman "meticulously maintained the property, adding to its value."
River Plaza is 95% occupied, according to Mattson. It contains studios, one-, two- and three-bedroom units, and he says the average unit size is about 500 sf and the average rent rate is $756 a month. Plymouth Meeting-based Korman has owned the property for 10 years, and Mattson says it maintained a corporate suite in the asset. "With that stripped out," he says, "the cap rate on the transaction was about 5.7%.
"It's a trophy asset with some value-add potential," he says. He also notes that, as a capital, Harrisburg represents an attractive market and good value in comparison with the state's larger cities.
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