Lancaster PA Commercial Real Estate

• 05Oct

  $13 M multi-family tax credit deal slated for Dauphin County, PA

  Multifamily No Comments

  CPBJ Reports: Rochester, N.Y.-based Home Leasing LLC is in the process of buying three vacant buildings in Lykens, including the former Lykens Hotel, as part of a historic downtown rehabilitation project in the northern Dauphin County community.

  Home Leasing, in partnership with the Dauphin County Redevelopment Authority, is planning to spend $13 million on seven parcels — four for parking — that would be used for 43 one- and two-bedroom apartments and retail space, said Cheryl Stulpin, the company’s vice president of development.

  The company is eyeing the four-story hotel property at 600 Main St., which is owned by the Lykens Community Development Corp.

  Home Leasing also intends to buy a former drug store and Patriotic Order Sons of America Lodge building at 601 Main St., which is held by Centric Bank, as well as a privately owned former public school at 545 N. Second St., Stulpin said.

  via Rochester developer tackling $13M Lykens project

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• 05Oct

  Hbg, PA. developer breaks ground for student housing project

  Multifamily No Comments

  CPBJ Reports: Harrisburg-based GreenWorks Development today broke ground for its $20 million Nittany Village project in Lower Swatara Township.Nittany Village will provide off-campus housing for students at neighboring Penn State Harrisburg. The plan calls for three apartment buildings that will house 66 four-bedroom units on a 5.5-acre lot connected to West Main Street and adjacent to Lawrence Street.It will be next to Campus Heights Village, a 264-bed project being developed on West Main Street by KGH Properties Inc. of Kutztown.The student housing will be connected to the Penn State Harrisburg campus by a new pedestrian and bike path.GreenWorks expects to have two of the three buildings completed in August, said Matt Tunnell, the company’s senior vice president. The third building is slated for completion in August 2013.

  via Hbg. developer breaks ground for student housing project

   

  
• 03Oct

  Loft trends in urban housing

  Investment, Multifamily No Comments

  
  

  The soaring ceilings, exposed brick and open beams in Lancaster’s new Liberty North building are trademarks of loft-style apartments appearing throughout the midstate.

  

  Lancaster-based Drogaris Cos. developed the Swisher building, a $7.9 million renovation at 425 N. Prince St., Lancaster, with 24 upscale apartments completed in 2009. The facility formerly was the Bloch Bros. tobacco warehouse. Photo/Submitted

  Liberty North, being developed by Lancaster-based Drogaris Cos., is the latest rejuvenation of an old warehouse or factory into loft apartments. The $9 million project renovated 66,000 square feet at 1060 N. Charlotte St. in Lancaster. The building has 21 apartments with 14 more slated to be built, President Ed Drogaris said. Average rent is between $900 and $1,800, he said.
  
  The apartments already are filling with tenants, he said.
  
  The market for loft apartments is huge, said Bill Swartz III, president of York-based Sherman Property Management Inc., developer of loft apartment building Codo 241 in downtown York. “We haven’t even begun to fill that demand,” he said.
  
  The company undertook the $12 million Codo 241 project after conducting a market study and focus groups that confirmed the demand, he said. Codo 241 opened in 2009 with 69,500 square feet of loft apartments and commercial space in the former York Auto Parts building at 241 N. George St. The living units filled faster than expected, Swartz said.

  Full article:  Trendy loft dwellings lift downtown economies

  
• 30Sep

  New senior housing planned for Palmyra, PA – PHFA to fund

  Investment, Multifamily 2 Comments

  CPBJ Reports:  The Lebanon County Housing Authority plans to turn a former shoe factory in Palmyra into 40 subsidized senior housing units contingent on the state giving it $8 million in tax credits.

  The $10 million adaptive reuse project would turn the 65,000-square-foot building at 101 N. Harrison St. into 36 one-bedroom apartments and four two-bedroom units, said Bryan Hoffman, the housing authority‘s executive director.
  
  The building is occupied by printing equipment manufacturer Aradiant, which wants to sell it and move to a smaller space, Hoffman said. The structure was built in 1973 as a shoe factory, he said.
  
  The senior housing plan is a way to be proactive with the building and avoid the property becoming blighted, Hoffman said. There is no market for manufacturing sites such as this one in towns anymore, he said.
  
  The authority has agreed to purchase the property for about $900,000 if the tax credits come through from the Pennsylvania Housing Finance Agency, Hoffman said. If developers get the green light, the apartment complex could be ready for tenants by fall 2013, he said.
  
  The application process is competitive and there is no guarantee the project will receive the needed $8 million in credits this spring, Hoffman said. As a nonprofit, the authority cannot directly benefit from the tax credits and would sell them to investors to raise the money needed to subsidize the project, he said.
  
  The authority has retained South Anneville Township-based Kaylor Architects Inc. for the design work and South Lebanon Township-based Arthur Funk & Sons Inc. as builder, Hoffman said.

  Competitive dimension – Central Penn Business Journal.

  
• 21Sep

  $23M Multifamily sale: 298-Unit in Dover, DE

  Multifamily No Comments

  CoStar reports: Hunt Companies sold the 298-unit multifamily property located at 4666 Caroline Ave. in Dover, DE to Morgan Management LLC for $23.18 million, or about $77,800 per unit.

  Formerly military housing, the Eagle Meadows apartment complex totals 352,202 square feet, on 72 acres located about 15 minutes from downtown Dover near Dover Air Force Base. The property recently underwent approximately $4 million in renovations including new HVAC, roofs, electrical panels and other improvements to one-third of the units. The property was 97 percent occupied at time of sale.

  via Hunt Companies Sell 298-Unit Multifamily Complex For $23M – CoStar Group.

  
• 21Sep

  $15.1M Multifamily Portfolio Purchase – South East PA

  Multifamily No Comments

  CoStar reports:  GPX Realty Partners LP sold four apartment complexes totaling 225 units to The Galman Group for $15.1 million, or about $67,100 per unit.Langford Apartments, located at 360 N. Bethlehem Pike in Ambler, contains 36 units. Containing 39-units, the Livingstone Apartments are located at 240 E. County Line Road in Hatboro. The Wellington apartments contain a total of 136 units and are located at 2529 Horsham Road in Hatboro. The Oak Terrace Apartments has 14 units, and is located at 2621 Horsham Road in Hatboro. The three properties in Hatboro, PA are operated as one facility.

  via The Galman Group Completes $15.1M Multifamily Portfolio Purchase – CoStar Group.

  
• 19Sep

  Presbyterian Senior Living adding more senior housing in Lancaster, PA

  Multifamily No Comments

   

  CPBJ reports:

  Presbyterian Senior Living next week will break ground for a second building at the Long Community at Highland, a senior living community in Manheim Township, Lancaster County, according to its website.

  Named Westminster Place, the building will have 61 income-based independent-living units, campus administrator Paul Taylor said.
  
  The organization based in Dillsburg, York County, purchased a 13-acre tract from Highland Presbyterian Church, adjacent to the church’s grounds on Oregon Pike, he said.
  
  “We had previously been affiliated with a home in Lancaster and wanted to get back into the area,” Taylor said.
  
  Presbyterian Senior Living purchased the Long Home, a Lancaster personal-care facility at 200 N. West End Ave., in 2009 and plans to move the 32 residents to the Long Community.
  
  The first building at the community will be completed in December and will contain the personal-care living space as well as 52 apartments, Taylor said.
  
  Westminster Place is slated to be finished in summer 2012, he said.
  
  A third building is planned; the organization is working on approvals through Manheim Township, Taylor said.
  
  Taylor said he could not provide the total cost of the project.
  
  Presbyterian Senior Living hopes to complete all three buildings by the end of 2013, he said. The nonprofit owns 24 campuses; 21 of them are in Pennsylvania.
  
  Benchmark Construction Co. Inc. in West Earl Township, Lancaster County, is the general contractor. Noelker & Hull Assoc. Inc. in Franklin County designed the buildings.

   

  Central Penn Business Journal.

  
• 19Sep

  Student Housing Moves to the Mainstream

  Multifamily 1 Comment

  NREI reports:

  Considering the overall economy is still shaky, the capital markets are funding a lot of student housing deals these days at quite aggressive rates and terms.

  With continued enrollment gains nationwide generally boosting rents and operating incomes at student housing properties, the capital markets are bullish on the sector.

  “It’s never been easier to secure debt for student housing properties — and equity as well,” says veteran developer Donna Preiss at Raleigh, N.C.-based Preiss Co.

  The most aggressive lenders might quote a rate as low as 4.5% to 4.75% for a seven-year mortgage secured by a solid asset. A rate in the low-5s is more likely with a 10-year transaction, Powell says.

  Meyer expects that additional equity investors will migrate to student housing as the first wave of post-recession projects goes into operation — and gives a clearer indication of likely stabilized cash flows.

  cont at Student Housing Moves to the Mainstream.

  
• 18Jul

  PA housing agency approves 2 Lancaster, PA multifamily projects

  Multifamily No Comments

   

   

   

  CPBJ reports:  Six multifamily housing developments in midstate PA have been awarded funding and tax credits from the Pennsylvania Housing Finance Agency, the state agency announced Friday.

  The board of the PHFA conditionally approved a total of $11.2 million in funding and nearly $30 million in tax credits for construction of 33 low-income projects across the commonwealth.
  
  Of the local projects, two are in Lancaster County — one in Marietta, the other in Lancaster. The other developments are in York, Camp Hill, Harrisburg and Gettysburg, the agency said.

  The midstate projects account for nearly 300 housing units. The dollar amounts of the awards have not been released because they are conditional, the agency said.

  Central Penn Business Journal.

  
• 22Jun

  Move over DCR, meet your bank’s new ratio: DYR

  Investment, Multifamily, Net Lease No Comments

  Executive Summary:  Banks have added a new ratio when deciding how to size your investment property loan – the Debt Yield Ratio.

  I’ll make this super  easy – think of it as the loan cap rate and you can’t go wrong.

  For review, the traditional cap rate derived market value is calculated by dividing the Net Operating Income by the Cap Rate:

  • Market Value  = NOI / Cap Rate

  The DYR is calculated by dividing the NOI by the Debt Principle:

  • DYR = NOI / Debt

  In practice, your bank loan officer will apply a pre defined DYR obtained by underwriting policy for the type of property and market.  They then will divide the NOI by the DYR to obtain the maximum loan size for your project

  • Debt = NOI / DYR

  For additional reading and some numerical examples, visit:

  Making Sense of Debt Yield Ratios.

  

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