The 370-unit luxury apartment building is unpriced but based on the market's fundamentals, the scarcity of new product coming online and the complex itself, Matt estimates it will trade at around $30 million. "There is virtually nothing new coming to market," he tells GlobeSt.com. "Construction costs and market rents don't justify new building." Citing the expected $30-million sale price, he notes that a developer couldn't build the Club at $80,000-$81,000 per unit. "In short you can acquire a good property for a significant discount on the replacement cost."
Located on Duncan Avenue and McKnight Road, the Club is a garden apartment community that is 92% occupied. Completed in 1991, it consists of 17 three and four story buildings, a one-story clubhouse, leasing office and fitness center. It is built on 24.2 acres with surface parking for 474 cars. The owners have renovated 91 of the units, Matt reports, giving potential buyers significant upside should they decide to renovate the remaining units.
The eventual buyer is probably going to be an individual or an entrepreneurial fund, Matt predicts, as Pittsburgh's multifamily market has not attracted much institutional investment over the years.
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