Lofts at Terrain IA Sale

JLL is pleased to present Lofts at Terrain (the “Property”), a 153-unit garden-style apartment community offering modern-style living through open-concept lofts and a comprehensive amenity package. Originally developed in 1985 as a hotel and converted to multifamily living in 2016, the Property features a unit mix of 115 studios and 38 two-bedroom units. The Property is ideally situated in the Green Tree Borough at the gateway to the Parkway West, South Hills, and Pittsburgh’s Downtown, providing remarkable accessibility to the region’s key employment hubs and the Parkway West’s retail corridor.

In-place rents currently perform 13% below the Property’s competitive set and 15% below another recent hotel-to-multifamily conversion in the submarket. However, the property has demonstrated strong rent growth momentum through recent lease trade-outs, achieving average increases of nearly 4% with some premiums reaching nearly 10%. Supported by capital improvements of approximately $1 million during current ownership’s hold, JLL projects that a targeted refresh will enable the Property to achieve upwards of $200 per unit in rent premiums, bringing the Property in line with the competitive set and capitalizing on this demonstrated pricing power.

Furthermore, the recent rise in utility prices has not yet been offset by reimbursements at the Property, which only recaptured 47% of total utility expenses over the trailing 12 months. Increasing the flat-fee expense pass-through to tenants up to 94% equates to an additional $138,000 in utility reimbursement income over the trailing twelve-month period.

Lofts at Terrain presents a compelling value-add investment opportunity for a well-occupied asset with significant upside potential through a targeted renovation program and improved utility billback structure to drive meaningful revenue and NOI growth.