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Center City’s multifamily assessed values have risen $1.1 billion in two years, increasing more than $100,000 per apartment unit

  • ​An analysis of 71 large apartment buildings in four Center City zip codes (19102, 19103, 19106, and 19107) indicates that investable multifamily experienced a $1.1 billion assessed value increase, or +66.1% in the last two years. While the increase was much sharper between 2017 and 2018, the two years taken together mean that the average apartment unit is now valued at more than $250,000, a $101,077 increase from 2017. Despite this startling increase in assessed value, per unit sales data suggest that high-end buildings are still undervalued relative to transaction-based pricing.

  • What buildings were impacted the most? Surprisingly, the 10 multifamily buildings that experienced the largest increased assessed values since 2017 are a mix of newer (One Water Street, 1919 Market), recently renovated (The Pottery, The Sterling), and older product (400 Walnut, The Chancellor, 1600 Chestnut, The Bentley, 2100 Walnut, and 2100 Parkway). Fourteen buildings doubled their overall assessed values. Whether or not a proposed 4.2 percent tax increase passes, the sudden and dramatic increase in assessed value creates uncertainty for investors and developers while simultaneously forcing landlords to pass along tax bill increases to tenants in the form of higher rents.

Source: JLL Research, Philadelphia Office of Property Assessment

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