Post Brothers Apartments has invested a total amount of $250 million in properties around University City and West Philadelphia.
Philly Voice reported that the move was done because Matthew Pestronk, president of Post Brothers Apartments, saw an opportunity when they noticed that there is a gap in the market for millennials that are past graduation, but still not at the stage where they are ready to take on a mortgage.
"We think that people have not historically stayed in University City or in broader West Philadelphia (after they graduate) simply because the options have not been available to them, and they have a perception of the area being very undergraduate-oriented," said Pestronk.
The company pointed out that the decision was made due to the increasing development of the neighborhood. A $1 billion redevelopment project called uCity was announced by the University City Science Center, and the company thinks that there are around 75,000 job offerings in the area.
The main hurdle now for the Post Brothers Apartments is how they can entice people who are working in the neighborhood to live in there too. Pestronk even pointed out that there are very few of the people who are working there that stay in the area at night.
As a response, the Post Brothers Apartments are planning to spruce up the Pine Street project by restoring the interior with high-quality finishes and building a private park on the roof, complete with dog runs and lounge areas.
"We plan to invest in the properties we've purchased to position towards upwardly mobile people and offer a superior product to what exists in the marketplace today," Pestronk said.
The Post Brothers Apartments has projects around Philadelphia and New Jersey that are worth a combined $600 million.
The company was founded during the burst of the housing bubble in 2007, but managed to stay afloat by "being smart, not buying when we felt the market was overheated," Pestronk said.
