Archive for January, 2012

For the team at Jackson Cross Partners, this year’s Martin Luther King holiday was more special than those in years past. Instead of taking the day off, JCP decided to make a difference for the youth and families of the Greater Norristown community by participating in the Greater Norristown PAL’s Martin Luther King day of service.

About Greater Norristown PAL

The Greater Norristown Police Athletic League (PAL) is a non-profit, volunteer organization serving the youth and families of the Greater Norristown community with recreational, educational, and cultural programs addressing citizenship, self-esteem, avoidance of substance abuse, and respect for law and order.

A Hard Day’s Work is Good for the Soul

Our day of service began in the morning. The JCP team was divided into groups and assigned specific tasks for the day. We organized the PAL library by sorting thru approximately 5,000 to 6,000 books and categorizing them appropriately. We helped organize and sort thru the storage rooms containing old computers, sports equipment and other items that have been donated over the course of the year. And, we spackled, sanded and painted many of the classrooms and hallways. It was hard work, but the JCP team had a great time making a difference for the kids and families at the Greater Norristown PAL!

By: Ann Bailey, CCIM

2011 has proven to be a stellar year for our regional multi-housing. Occupancies and rents are up. Looking at apartments on a national level, the following presents a brief, macro snapshot:

• Most Desirable Asset Class
• Positive Market Fundamentals
• Rent & Occupancies Increase Nationally
• 1.5M New Rental Household Formations 2011
• Decline in Rate of Home Ownership

National statistics indicate an alltime low vacancy rate of 5.6% with rising rents. Some economists forecast that each 1% decline in home ownership rates represent the movement of one million households to rentals. No surprise that apartments continue to be a sought-after asset class. We see this trend continuing on through 2012.

The Philadelphia MSA (exclusive of the CBD) is progressing up with both modest rent increases and modest rises in occupancy. We continue to be in a somewhat supply constrained suburban market, with only approximately 3-4 new projects slated to come on line in 2012.

The Center City Philadelphia market (commonly referred to as “downtown”) is the proverbial “hole-in-the donut”. Rent growth and occupancy has been outstanding. Newer Class “A” product is commanding rents of $2.50-$2.75/SF. Class “B” is generally in the $1.50-$1.75/SF range. Demand remains high fueled by a 24/7 vibrant retail and entertainment market. Looking forward to 2012, there are approximately 3-4 newer Class “A” apartment projects planned for the “west of Broad Street” area. The impact of these new projects will depend a great deal on timing, although it appears that the current market is healthy enough to absorb approximately another 1,000 +/- units.

On the capital markets front lending rates continue to be historically low. There are many more sources for either acquisition or refiancing, although Freddie Mac and Fannie Mae continue to be preferred. We are now seeing some regional banks and life companies coming back to the market. There are signifi cant amounts of “homeless capital” (a term which refers to the large amounts of money looking to be placed—especially in multi-housing) and this has provided alternative fi nancing choices.

On the 2011 sale side, there were approximately 48 transactions (over 50+ Units) which closed in the Philadelphia MSA. This represents a 32% increase over 2010. While a few of these sales represented “small portfolio” type acquisitions of distressed real estate, the majority were market driven sales which represented strong investor interest in apartments. We see 2012 shaping up to be robust and that spring leasing will continue with upward trends in rents and occupancy.

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