Menu

The offering

BERKADIA​ has been engaged on an exclusive basis to arrange for either the outright sale, joint venture, or ground lease structure for the construction of a ground-up multifamily project to be known as Walnut Station​ (the “Property” or “Project”), which has preliminary approval (final approval anticipated by September 2020) and full architectural drawings for a 204-unit, mid-rise multifamily development project located in Lansdale, PA. ​ The Project will have 100% lot coverage upon delivery, with no site work requirement in the pre-development phase.

Walnut Station is located within Montgomery County, Pennsylvania’s second most affluent county, and upon delivery will feature approximately 204 residential units situated directly across from Lansdale Station, which is serviced by SEPTA Regional Rail and is the second busiest regional rail line in the network. Walnut Station offers prospective investors an incredibly rare opportunity to develop a market-leading asset in one of Philadelphia’s most sought-after submarkets.s.

Highlights

  • Transit-oriented development located next to SEPTA’s Lansdale Train Station
  • Central Montgomery County Location with Proximity to Major Employment Hubs
  • Strong Demographics and Top-Ranked Public Schools
  • Market Leading Amenity Package & Self Sustaining Building
  • Automated Parking System
  • Gold Standard for an Energy Efficient Building
  • Option to Structure a Ground Lease and Capitalize on Returns

Property details

Address

19-43 W. Third Street, Lansdale, PA 19446

Parcels

11-00-1636-00-6, 11-00-16340-00-2, 11-00-16344-00-7, 11-00-16348-00-3, 11-00-16352-00-8, 11-00-16356-00-4

Municipality

Lansdale

school district

North Penn

county

Montgomery County

gross site area

50,602 SF / 1.16 Acres

Planned units

204

Approval status

Preliminary Approval, Fully Engineered

Title

Fee Simple, Joint-Venture or Ground Lease

Market Overview

Healthy Market FUNDAMENTALS

Fundamentals in the Lansdale/Gwynedd submarket are strong, characterized by a persistently low vacancy rate and robust year-over-year rental growth. As of Q1 2020, the submarket’s average vacancy rate dropped 10 basis points to 3.9% and is projected to sustain this level regardless of new deliveries to the market over the coming months. Price points have risen accordingly with demand,​ with a five-year average rent growth of 2.6% and 2019 closing year end with an average rent growth of 5.2%, higher than nineteen of the metro’s twenty-eight submarkets.

Due to a slight increase in new inventory, this trend is projected to moderately fluctuate over the next five years; with asking rent growth anticipated to rise at an average of 2.08% and effective rents escalating at a rate of 2.0% as landlords begin to limit concessions. Further contributing to the health of the overall market are a limited development pipeline within the submarket, excellent connectivity to major employment hubs in the Philadelphia metro and top-ranked public schools.

limited Development Driving Robust Property-Level Performance

Approximately 79% of the housing stock in this sub-market is comprised of 1960-1970s era construction​ leaving renters with limited options when searching for newly constructed properties. Over the last four quarters, submarket absorption totaled 123 units, more than triple the average annual absorption rate of 36 units since 2010.

Demand at Class A properties is robust, as shown by AVE Lansdale’s occupancy level consistently maintaining 95%+ despite having the highest rents in the submarket, as well as Madison Lansdale Station’s strong initial lease-up, with an average of 15 units being absorbed each month. ​ There is one additional major development in the immediate area, The Promenade at Upper Dublin, which is scheduled to be delivered by BET Investments in 2020.

Development pipeline map

Investment Team

Financing

JV Equity and Structured Capital Group

Berkadia®, a joint venture of Berkshire Hathaway and Jefferies Financial Group, is an industry leading commercial real estate company providing comprehensive capital solutions and investment sales advisory and research services for multifamily and commercial properties. Berkadia® is amongst the largest, highest rated and most respected primary, master and special servicers in the industry. This advertisement is not intended to solicit commercial mortgage loan brokerage business in Nevada. ​

© 2021 Berkadia Real Estate Advisors LLC and Berkadia Real Estate Advisors Inc. Berkadia® and Berkadia Commercial Mortgage® are trademarks of Berkadia Commercial Mortgage LLC. Investment sales and real estate brokerage businesses are conducted exclusively by Berkadia Real Estate Advisors LLC and Berkadia Real Estate Advisors Inc. Commercial mortgage loan origination and servicing businesses are conducted exclusively by Berkadia Commercial Mortgage LLC and Berkadia Commercial Mortgage Inc. Tax credit syndication business is conducted exclusively by the Tax Credit Syndication group. For state licensing details for the above entities, visit: www.berkadia.com/legal/licensing.