Suburban Pittsburgh Value-Add Apartment Community for Sale

Monday, October 23, 2017

Holliday Fenoglio Fowler, L.P. (HFF), on behalf of the owner, is marketing Eagle Ridge apartments for sale. Eagle Ridge is a 352-unit, garden-style apartment community with outstanding value-add potential in the stable Monroeville suburb of Pittsburgh, Pennsylvania. The property is an exceptionally well-maintained property with capital improvements made in the last five years, making it a superior investment opportunity.

The apartment property for sale is situated on 42.474 acres at 1500 Eagle Ridge Drive in Monroeville, which is 12 miles east of the Pittsburgh CBD. Although less than a quarter mile from William Penn Highway (Business Route 22), Eagle Ridge is situated in such a way that it enjoys privacy created by trees, open space and topographic barriers. It’s near the center of the main commercial corridor in the submarket and provides tenants with convenient access to retail, entertainment and businesses.

Eagle Ridge is and has historically maintained an occupancy of at least 95 percent with a strong tenancy heavily weighted toward management, medical, professionals and government employees with sufficient income to support the market rents. The apartment community for sale is one of the most modern, amenitized and well-maintained in the Monroeville market. It has a clear price/quality advantage that is reflected in its occupancy and rent. Eagle Ridge has a significantly better amenity package than its competitors. In addition to the standard features, the property has a newly renovated business center, fitness center, cafe, tennis courts, two heated swimming pools and remote access garages.

Eagle Ridge provides investors with a proven value-add opportunity, with two tiers of potential remaining value-add upside. Currently, 253 homes have not been renovated, with five units having a cabinet door upgrade only and one unit receiving an appliance upgrade. Ninety-three units received a “platinum” upgrade, which includes new oak Shaker-style cabinet doors, black appliances, faux wood vinyl flooring in kitchens, brushed nickel lighting in kitchen and living room, tile backsplash and faux granite kitchen countertops.

Apartment Community for Sale Investment Highlights

  • Exceptional Accessibility:  Monroeville has unparalleled accessibility. The property is situated overlooking Interstate 376 (Parkway East) near its merger with Interstate 76 (Pennsylvania Turnpike). These two interstates connect Eagle Ridge with every other regional interstate as well as virtually every high-volume commuter highway, which gives the property convenient access to the major employment centers, including Monroeville, Pittsburgh CBD (12 miles), Oakland, Pittsburgh International Airport Corridor (25 miles) and Southpointe (20 miles).
  • High Barriers to Entry with Upside Potential and No New Competition Planned:  The difficult regional topography forces all development into narrow and highly developed corridors with little room for new development. The last new community in the submarket was built in 1990, and there is no new construction planned or proposed in the Monroeville submarket, as current market rents do not justify new construction. With no new construction planned in the submarket, and the majority of the stock more than 30 years old, Eagle Ridge, which was completed in 1989, is still one of the newest complexes in submarket. Along with a proven renovation and upgrade plan in its early stages, the property offers favorable upside potential to an investor.
  • Near Major Employment Center and a Large Market Area with Favorable Demographics:  With more than 6.2 million square feet of retail, Monroeville contains the largest concentration of retail space in the Pittsburgh MSA. It also has 3.1 million square feet of office space and 7.8 million square feet of industrial space. The critical mass of retail, office and industrial space along with unparalleled regional accessibility enables Monroeville to draw from a wide geographic area. Within five miles there is a population of approximately 154,401 in 69,351 households with a median annual household income of $52,314.
  • Attractive Assumable Debt:  The property is currently encumbered with a highly attractive low interest rate Freddie Mac first mortgage loan, which must be assumed by the buyer. The interest rate is 3.66 percent, which is well below today’s market rate. Additional debt proceeds should be available through Freddie Mac’s Supplemental second mortgage program. HFF will provide supplemental mortgage information upon request.

Eagle Ridge is a value-add apartment community for sale in suburban Pittsburgh. For more information on this commercial property in regards to the sale, loan assumption or available supplemental financing, please contact Nick Matt or Tom Rieck in HFF’s Pittsburgh office. To view HFF’s current real estate investment listings, please click here to be directed to HFF’s property search page.

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