Apartments at Summerset at Frick put up for sale

The major multifamily component of the Summerset at Frick Park master plan has been put on the market.

Downtown Pittsburgh-based Ralph Falbo, Inc. and Philadelphia-based Pennrose Development and Property Management have opted to sell its Gateway at Summerset and Reserve at Summerset Apartments, companion rental properties totaling 171 units, located at the brownfield redevelopment across the Homestead Grays bridge from the Waterfront.

Nick Matt, a senior managing director for HFF Pittsburgh said the properties offer a rare investment opportunity to buy new multifamily property in the region. While the Reserve opened 11 years ago, the Gateway apartments were completed in late 2013.

"I think they've built a great product in a great location. It's essentially fully leased," said Nick Matt.

HFF is marketing the properties as 98 percent and 100 percent occupied for the Gateway project and the Reserve project, respectively.

In a market in which most of the newer apartment projects have mostly been sold in the past few years, including the 235-unit apartment complex across the river at the Waterfront, Matt said he's already experienced strong interest in the property in a hot market for multifamily.

"I can tell you we just went out to the market on Thursday and we already have over 70 confidentially agreements that have already been executed," he said, of the privacy requirements potential buyers have to meet to consider the properties. "So it's certainly very strong."

The properties benefit from being close to Oakland and downtown as well as just across the river from the shopping and dining options at the Waterfront, Matt said. According to HFF's marketing materials for the property, rents at the two complexes range from more than $1,300 to $2,575. The properties, located within the largely residential mix of Summerset at Frick, offer a mix of one-, two- and three-bedroom units.

Tim Schooley covers retail, real estate, construction, hospitality, arts and entertainment, and government. Contact him at tschooley@bizjournals.com or 412-208-3826.