HATFIELD, PA—Marcus & Millichap brokered the $8.56 million sale of 84 multifamily units in the Applegate Apartments and Applecore Apartments in Montgomery County.
Applegate Apartments, 72 units, is located at 434 West Vine Street in Hatfield, PA. Applecore Apartments, with 12 units, is located at 464, 472, and 480 2nd Street in Souderton, PA. Both towns are known for being excellent suburban locations and close to major employment centers.
Andrew Townsend and Clarke Talone, both first vice president-investments, Ridge MacLaren, senior vice president-investments, and Daniel Bernard, associate, in Marcus & Millichap’s Philadelphia office, facilitated the transaction and represented the buyer, a limited liability company that was not identified. The buyer plans to begin renovations to upgrade the property and increase rents, so they are more in-line with the market.
“Value-add multifamily is still in high demand,” says Talone. “Buyers are willing to accept low current returns for an opportunity to improve a property and generate higher rents.”
The seller was a family trust, also not identified by Marcus & Millichap, which had owned the property for decades.
“The seller was the second generation of the original developer of the property, who had owned it for 48 years,” says Townsend.