Construction Maison

Call it the rise of the secondary markets. The Solomon Organization LLC , a New Jersey- based operator of multifamily assets, has closed on the purchase of the newly built Ivy Ridge Apartments in Swatara Township, according to a news release from California-based Marcus & Millichap Real Estate Investment Services , the firm that brokered the deal. The 218-unit complex, which is near the Harrisburg Mall and was developed by Lower Paxton Township - based Triple Crown Corp . Inc., sold for $25.7 million, or $117,913 per unit, the highest in the Harrisburg market this year, according to Marcus & Millichap. “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,” said Zachary Pierce, one of the directors of the firm’s National Multi Housing Group in Philadelphia. The firm has sold about a dozen properties representing more than 1,000 units in Central Pennsylvania in recent ...

Local investors beware: Central Pennsylvania is on the map for outside groups looking for higher returns. Last month, The Solomon Organization , a New Jersey-based operator of multifamily properties, closed on a $25.7 million purchase of the newly built Ivy Ridge Apartments in Swatara Township . That price — $117,913 per unit — is the highest in the Harrisburg market this year. It also marked the company's first foray into the Harrisburg area after landing in Lancaster County six years ago. It owns six communities in Lancaster County and more than 1,200 units. "Two years ago, you said 'Harrisburg' and people would just hang up the phone," said Zachary Pierce, director of the National Multi Housing Group in Philadelphia for Marcus & Millichap Real Estate Investment Services . Outside investors were interested only in primary markets such as New York City and Washington, D.C., and maybe Philadelphia, he said. But as prices have shot up in those prime areas, th...