By Mark Belko: mbelko@post-gazette.com or 412-263-1262.
First Published March 23, 2023, 7:01 AM
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7:01 AM
After completing more than 800 apartment units in the Strip District over the last five years, a Cleveland developer is putting them all up for sale.
Cleveland-based NRP Group has begun marketing its two apartment complexes in the Strip — Edge 1909 and the District — for sale through the CBRE real estate firm.
The sprawling buildings located behind the produce terminal and close to the Allegheny riverfront are being listed without an asking price. According to the marketing materials, they can be purchased as a package or separately.
NRP is selling the 442-unit District complex at 1679 and 1759 Waterfront Place only a year after completing the project.
The District was the developer’s second venture in the Strip in partnership with the Buncher Company, which owns the land on which the complex was built.
In 2018, NRP finished the 364-unit Edge 1909 apartment building at 1909 Waterfront Place on Buncher-owned property in its first foray into the Strip. The District was then built next to it.
NRP officials could not be reached for comment. Laura Lawrence, the CBRE senior vice president who is leading the marketing effort, declined comment.
Bryan McCann, senior vice president for the Colliers International real estate firm, said he’s not surprised that NRP is selling the properties so soon after completing them.
The Cleveland developer tends to be a “merchant builder” that constructs and stabilizes properties and then sells them.
“That’s kind of a normal business strategy for them,” he said.
While the multifamily market is no longer at its peak, in part because of rising interest rates, Mr. McCann said he expects strong demand for both the Edge 1909 and the District complexes, particularly from larger institutional investors.
“I don’t think we’re at our peak any more, but it’s still a good market out there,” he said.
Mr. McCann estimated that the properties could sell for more than $300,000 per unit. That would place the sale of the Edge building at more than $109 million and the District above $132 million.
The cost of building each was estimated at $60 million to $100 million.
In marketing materials, CBRE touts the popularity of the Strip, with its retail shops and restaurants, and a booming residential and office market.
It stated that apartment rents, now 22% higher than the surrounding submarket, are expected to continue to rise. It also boasted that the Strip is a major tech hub with employers like Aurora, Facebook, Bosch, Honeywell and GNC.
The average annual income per unit is $191,632 at the Edge and $212,330 at the District, it added.
“Obviously, in the Strip and Pittsburgh, multifamily continues to be an exceptional market. This will be a good test to see where the market is today,” Mr. McCann said.
According to marketing materials, both complexes are 95% occupied.
The Edge features studios, one- and two-bedroom apartments ranging in price from $1,660 a month for a studio to $4,036 for a 2-bedroom, 2 ½-bath unit with a den.
Next door, the District offers a mix of studios and 1-, 2-, and 3-bedroom units ranging in price from $1,564 a month to $3,354 for a 3-bedroom, 2-bath unit.
Mark Belko: mbelko@post-gazette.com
