Philadelphia
Philadelphia is vast becoming the next bedroom community to New York City. Just two hours away from the Big Apple, Philadelphia is comprised of lower priced real estate and a more affordable cost of living. Areas of Philadelphia are highly susceptible to pocket appreciation. South Philadelphia, where Blue Moon Capital purchases a majority of its Philadelphia inventory, has seen quarterly appreciation up to 8% in 2007. Philadelphia truly held its own during the market correction, relative to its more volatile neighbors1 (Boston -3%, New York City -4.8%, Washington -7.8%). Recent repots have indicated Philadelphia’s Metropolitan Area leveled off to a 3.2% appreciation rate for 2007.2
Major developments support this market’s growth and stability. This includes two brand new casinos located in South Philadelphia (the Foxwoods Casino) and North Philadelphia (the Sugarhouse Casino) with completion dates in 2008 and 2009 respectively. These new attractions are projected to bring in $770M in gross revenues and add an additional 2,000+ direct jobs to the local economy.
Blue Moon Capital projects an unabated demand for rental housing in Philadelphia in 2008 and 2009 influenced by the sub-prime mortgage correction and the opening of the Foxwoods and Sugarhouse Casinos.
