|Number of units||100|
Jones Lang LaSalle Americas, Inc. ("JLL") is pleased to present Governors Ridge Apartments (the “Property”), a 100-unit Class B value-add suburban garden apartment and townhome complex exceptionally located in the highly desirable McKnight Road corridor in the North Hills of Pittsburgh, Pennsylvania.
The Property is located just off McKnight Road, the area’s dominant retail corridor in the north suburbs of Pittsburgh. The area is also one of the largest, most affluent, and fastest growing areas in the region. The location is easily accessible from not only the City of Pittsburgh, but the entire MSA due to proximity to I-279, I-79 and the Pennsylvania Turnpike. In addition to living within minutes of over 5 million square feet of retail, residents are located within 10 minutes of the Pittsburgh CBD. Governors Ridge Apartments offer two-bedroom apartments and two and three-bedroom townhomes. Although located within seconds of abundant retail, restaurants, and entertainment, along one of the most dominant commercial corridors in the Pittsburgh market, this garden style and townhome community is nestled within a dense, wooded scenery, offering a relaxing reprieve from the lively and bustling corridor.
Governors Ridge offers a superior value-add investment opportunity. Currently, the Property is 98% occupied with steadily increasing rental rates. It is a rare opportunity to purchase a Property that is well leased with increasing rents and still have vast upside potential.
The Property is being offered on an all cash basis enabling investors to take advantage of extremely attractive financing alternatives that exist in today’s market.
The Property is located in Pittsburgh’s highly desirable McKnight Road corridor in the North Hills, providing easy access to and from all the major highway systems servicing the area. Located off of McKnight Road, the Property benefits from the proximity of numerous shopping centers, offering a variety of shopping, dining, and entertainment options. Additionally, major employment centers are only a short commute from the Property, with the CBD, North Shore, and Strip District all within an easy 10-minute drive.
Pittsburgh’s Primary Shopping, Dining, and Entertainment Corridor
Located off of McKnight Road, the Property benefits from the proximity of numerous shopping centers such as North Hills Village, Ross Towne Center, McIntyre Square, Block at Northway, McCandless Crossing, and Ross Park Mall. With nearly 5 million square feet of retail, McKnight Road features numerous shopping, dining, and entertainment attractions.
The North Allegheny submarket consists of approximately 12,300 units and has historically been one of the top-performing suburban submarkets in the Pittsburgh MSA. The demand is the strongest in the center of the submarket along McKnight Road due to the critical mass of retail, office, dining, and entertainment, proximity to the CBD, and accessibility to all major interstates. New supply has been absorbed well, and there is minimal development in the near term, which has resulted in strong rent growth of 10.2% since 2019, while occupancies have remained around 95%.
Governors Ridge Apartments is and has historically maintained an occupancy at or above 90%. The Property is currently 98% occupied.
Barriers to Entry
The severe Appalachian topography limits the number of available building sites. Those that are available are difficult and expensive to develop. Most of the new developments are a further distance from the CBD due to land availability and cost.
Below Replacement Costs
The limited land and the difficulty and cost of entitlement along with the rising cost of construction severely limit new project feasibility. Furthermore, new projects could not compete anywhere near the price point of the Property and would not be considered competition.