Categories: Business NewsNewsReal Estate & Properties

Trammell Crow Company Sells Matson Mill for $109 Million

The Matson Mill apartment complex features modern designs and high-end amenities.

Trammell Crow Company

Trammell Crow Company is a leading real estate development and investment firm with a strong presence in the United States. Established with a focus on creating high-quality commercial and residential properties, the company has a longstanding history of successful projects across various markets. In recent years, Trammell Crow has been involved in significant transactions, such as the sale of the Matson Mill apartment complex in Conshohocken, Pennsylvania, which exemplifies its expertise in multifamily developments. Their portfolio includes modern, amenity-rich communities that cater to the needs of urban dwellers and investors alike. The firm’s success is driven by its commitment to innovation, strategic partnerships, and a deep understanding of regional market dynamics.

News Summary

In July 2024, the Trammell Crow Company sold the Matson Mill apartment complex in Conshohocken, Pennsylvania, to Goldman Sachs Asset Management for $109 million. This modern property, featuring 280 units and extensive amenities, achieved an impressive occupancy rate of 95% at the time of sale. Acknowledged as a top real estate deal by the Philadelphia Business Journal, the transaction highlights the ongoing demand in Greater Philadelphia’s multifamily real estate market, particularly with recent trends indicating strong investment in the sector.

Conshohocken, Pennsylvania

In a significant real estate transaction, Trammell Crow Company has sold the Matson Mill apartment complex to Goldman Sachs Asset Management for $109 million. The deal, finalized in July 2024, reflects a lucrative market for multifamily properties in the Greater Philadelphia area.

Located at 101 Washington Street, the Matson Mill apartment complex boasts 280 units across 317,740 square feet. This modern complex, which opened in 2022, offers a variety of apartment layouts, including studio, one-bedroom, and two-bedroom options, ranging from 487 to 1,818 square feet. At the time of the sale, approximately 95% of the units were occupied, highlighting strong demand in the local rental market.

Matson Mill has garnered recognition as one of the “Best Real Estate Deals of 2024” by the Philadelphia Business Journal, securing first place in the apartment sale category. This accolade recognizes top commercial real estate projects and deals completed within the Philadelphia metro area over the prior year, further emphasizing the property’s significance in the market.

Property Features and Amenities

The Matson Mill complex is designed by Hord Coplan Macht and features high-end finishes including quartz countertops and open-plan layouts. Residents enjoy various amenities such as a swimming pool, clubroom with kitchen, game room, conference lounge, gym, a train waiting area, and a dog wash station. Approximately 45% of the units offer scenic river views, with 73% featuring balconies or terraces, enhancing the appeal of the living space.

Location and Accessibility

Matson Mill is strategically situated across from the Southeastern Pennsylvania Transportation Authority (SEPTA) Regional Rail Station, which is planned for upgrades that include a new parking garage. The complex’s location is about 3 miles from major interstates 476 and 76, and approximately 15 miles from downtown Philadelphia, making it a desirable locale for commuters.

Market Context

This transaction is part of a broader trend observed in Greater Philadelphia’s multifamily real estate market. Despite 3,037 new units being delivered in the second quarter of 2024, the area’s occupancy rate remains robust at 95.3%. Additionally, the average rent in the metro area increased by 1.5% from the previous quarter, underscoring continued demand for rental properties. The multifamily investment volume reached $191.5 million year-to-date as of June 2024, with commercial sales totaling $149.9 million in the first quarter alone.

Management Transition

As of July 24, 2024, Greystar has taken over property management for Matson Mill, succeeding Buzzuto Management Company. This transition may bring new operational strategies aimed at enhancing resident satisfaction and property performance.

Previous Development and Sale Process

Matson Mill was a joint venture development between High Street Residential (HSR) and MetLife Investment Management. Prior to the transaction, the property was marketed by CBRE and officially listed in March 2024, paving the way for its successful sale in mid-year.

The sale of Matson Mill stands as a testament to the continuing strength and attractiveness of the Greater Philadelphia multifamily market, indicating a healthy investment climate for real estate in the region.