Multifamily developer and operator Jefferson Apartment Group and equity partner CP Capital have closed on a parcel in Fort Washington, Pa., a dynamic Philadelphia suburb. The joint venture plans to develop on the 14-acre site an apartment community consisting of three five-story midrise structures.
The as-yet unnamed community, at 1125 Virginia Drive, will feature 310 luxury apartment homes. Among the 8 acres of open space included in the development will be a pedestrian promenade that will connect the three buildings. The promenade will link to Fort Washington walking and biking trails and will also deliver access to proximate retail establishments. The community’s 12,000 square feet of interior amenity space will include a game area with billiards, shuffleboard and pinball.
Among the features and finishes of apartment homes will be stainless steel appliances, quartz countertops, tile backsplashes and plank flooring.
“With any large development project there are always challenges, but in this instance, the approval cycle ran fairly smoothly,” Drew Chapman, JAG’s senior vice president, told Multi-Housing News. “In comparison (was) contending with the overall macro economy and how it has continued to impact construction pricing, and more acutely, the institutional equity markets and the lending community.
“When it comes to overcoming challenges such as these, it’s all about relationships and having an established first-class reputation. Jefferson Apartment Group has worked with the general contractor, CBG, on several projects throughout the mid-Atlantic region. In addition, United Bank has been a trusted lender on multiple successful JAG projects. Through the strength of our industrywide reputation, we established a new partnership with CP Capital and look forward to working alongside them in delivering this 310-unit luxury multifamily development to the expanding Fort Washington market.”
The Greater Philadelphia metropolitan area has witnessed consistent employment growth and in-migration in recent years, making it an ideal market for multifamily investments, said John Begley, vice president of investments for CP Capital.
“Philadelphia’s economy greatly benefits from its diverse mix of industries, strong higher-education presence and lower cost of living compared to nearby cities like New York and Boston, making it an attractive area for young professionals,” he said.
“These facts have driven demand for high-quality rental housing in Greater Philadelphia, and we are thrilled to be partnering with Jefferson Apartment Group to help meet that demand with this project.”
The parcel upon which the apartment community will be developed is the former site of an office building of management services company ADP LLC.
That location offers immediate access to the Pennsylvania Turnpike (I-276), as well as to prominent job hubs. The employment center of King of Prussia, Pa., is situated within a 20-minute drive from the community. A 30-minute commute will take residents to Center City Philadelphia. New York City is 90 minutes away.
According to a prepared statement from JAG, Fort Washington is the third-largest office market in Pennsylvania, ranking behind only Center City Philadelphia and King of Prussia. Major employers include Ally Financial, Unisys, Toll Brothers, Nutrisystem, Aurinia Pharmaceuticals and Temple University.
Numerous commercial establishments are situated within the immediate vicinity. They include Wawa, LA Fitness, CVS, Walmart, Sam’s Club, Sprouts, Lululemon, Chipotle, Chick-fil-A and Starbucks. In December, JAG announced it and a joint venture partner would develop a 27-story Northern Virginia high-rise apartment community.