How would you describe the evolution of Philadelphia’s multifamily landscape?

There’s a noticeable shift toward institutional growth and attracting outside investors, particularly from New York. However, these investors often lack an in-depth understanding of the local market. Leveraging our local knowledge, we focus on the return on investment (ROI) to guide our investment decisions. Our presence on the ground provides a competitive edge. When considering acquisitions, we prioritize three key attributes. First, the purchase price relative to replacement cost needs to make sense, typically around 50-60% of replacement cost. Secondly, we look for opportunities to streamline operations, leveraging our concentration in Philadelphia. Lastly, we seek avenues to enhance portfolio value through interior unit renovations and community improvements.

What’s the trajectory you anticipate for the multifamily sector?

While the previous downturn was financially driven, the current one has been all-encompassing. Initially, adapting by closing common areas and amenities was a tough but necessary decision. Daily executive team meetings helped shape our forward plan. From this forced adaptation, we’ve recognized significant potential in multifamily. Embracing this change, we’re exploring centralized leasing systems and technology-driven solutions. Looking ahead, I remain optimistic about the multifamily industry.