$25.7 Million Apartment Complex Sale in Harrisburg, PA Brokered by Marcus & Millichap

Ivy Ridge Apartments, 589 Yale Street, Harrisburg, PA

HARRISBURG, PA – Marcus & Millichap Real Estate Investment Services, the nation’s largest real estate investment services firm, has arranged the sale of Ivy Ridge Apartments, a 218-unit, newly constructed, garden-style apartment complex in Harrisburg, Pa.

Zachary Pierce

The $25,705,000 sales price equates to $117,913 per unit, which represents a new price per unit high in the Harrisburg market this year. 

            Zachary Pierce and Mark Thomson, directors of Marcus & Millichap’s National Multi Housing Group in Philadelphia, represented the seller, a local investor/developer. The buyer, also procured by Pierce and Thomson, is a large operator of multifamily assets based in Northern New Jersey. 

            “The marketing process for this asset went very quickly due to the demand for quality assets and the increased returns that can be achieved in a secondary market,” says Pierce. 

Mark Thomson

“We have sold approximately one dozen properties representing more than 1,000 units in Central Pennsylvania markets over the past few years.

“The sale of Ivy Ridge is evidence that large private investor groups and institutions are willing today to move beyond primary markets into secondary markets in order to purchase quality assets with higher yields,” adds Pierce

“Two of the top three interested parties in this transaction were New York-based institutional investment groups.

“ In previous years, institutional investors would typically forego opportunities in the Harrisburg market, but with pricing in core markets like Philadelphia, New York and Washington, D.C. reaching 2007 levels, it has become necessary for buyers to expand their horizons,” Pierce continues. “Secondary markets with strong economic fundamentals like Harrisburg, which can offer investors a cash-on-cash return 100 to 200 basis points better than real estate in core markets, are attractive again.”

            Constructed earlier this year on 12 acres, the property is located at 589 Yale St. in Harrisburg, Swatara Township. The complex is a half-mile from the Harrisburg Mall and two miles from downtown Harrisburg. Interstates 283 and 322 and the Pennsylvania Turnpike are also nearby.

 For a complete copy of the company’s news release, please contact:

Gina Relva

Public Relations Manager

(925) 953-1716