|The energy was high this morning at the Ritz-Carlton, where 300 readers joined us for Bisnow's second annual Philadelphia Multifamily Summit.
|Ballard Spahr's Dominic De Simone and McGladrey's Beryl Simonson expertly moderated panels that broke down Philly's multifamily trends, the impact of the economy and job growth on the market (and how local universities are affecting them), capital markets, and more. Speakers included top execs from Morgan Properties, Dranoff Properties, Madison Apartment Group, JLL, Post Brothers Apartments, Federal Capital Partners, Beech Street Capital, and Marcus & Millichap. We'll have detailed coverage on Monday, but we caught up with one of our speakers just ahead of the event.
|Post Brothers Apartments prez Matt Pestronk, who took the stage this morning, tells us that the Philadelphia multifamily rental market is strong, with rents and occupancies still rising. But there’s some potential for pain among owners that have overpaid recently for older properties because competitive bidding drove up prices.
|Matt adds that Philadelphia-area multifamily developers are well capitalized now, and everyone who’s developing is doing so with the idea that there are core buyers for stabilized properties. “We’re developing about 1,100 units [including Rittenhouse Hill, pictured], and if we wanted to sell them—though we aren’t planning to—there would be no shortage of buyers.” Buyers are eager because of the market’s strong fundamentals. The local economy is creating jobs, but people are still reluctant to buy a home, and the dearth of apartment development in recent years means that supply is short. Stayed tuned to hear more from Matt and our other expert speakers.