PHILADELPHIA: Seeds planted 25 years ago now resulting in multi-family 3.8% cap rate

While sitting 49 floors above the 5th largest city in America on a crystal clear cold day, I listened to one of the Philadelphia real estate industry senior statesman and significant property owners discuss how it was decided to create the 80 city block self-taxing Center City Business District http://www.centercityphila.org/. As a result of taking matters in their own hands to make their downtown area safe and clean, domestic and offshore debt and equity is beginning to pour into the until recently local only owned real estate market. National restaurants are renewing what were $30 PSF rents at over $100 PSF and multi-family developers are paying 3.8% cap rates for value add development deals.