Plymouth Meeting’s 5 Cap Realty Planning to Spend $1 Billion Purchasing Apartments
A partnership between Plymouth Meeting’s 5 Cap Realty and RREIC Advisors is looking to spend up to $1 billion buying apartments, writes Natalie Kostelni for Philadelphia Business Journal.
The venture, which also includes San Francisco’s JMP Group, is looking to invest in value-add and distressed family properties. The venture is looking to buy around ten 200-300 unit properties a year and will initially focus on properties east of the Mississippi.
So far, the partnership has made two acquisitions. It has paid $36.3 million for Summer Chase, complex of 198 units located at 100 Hunsberger Drive in Limerick, and $21.6 million for Grove Mountain Park, a 13-building suburban Atlanta property.
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While both of these properties are value-add purchases, the partnership is looking to also take advantage of the multifamily sector’s eventual downturn, which they believe is imminent.
“We believe there will be substantial opportunities coming in the next couple of years,” said David Reiner, managing director of RREIC. “Right now properties are fully priced but defaults will go up in certain markets in the next year or two.”
Read more about the partnership’s plans at Philadelphia Business Journal by clicking here.
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