Here’s the status of major apartment projects in Lancaster County – LNP | LancasterOnline

As the spring construction season approaches, strong demand for rental housing in Lancaster County means an apartment building boom has kept up momentum despite rising interest rates and construction costs.

Subsidized affordable housing still remains in short supply, though a large number of units entering the market in the near future could help lower rents across the board.

Five new projects with at least 50 units each are currently under construction, making up a combined 416 units.

Another 19 projects with at least 50 apartments each are either proposed or approved for construction in the coming years, representing another 3,695 units. About half are in Lancaster city, and half in surrounding municipalities.

Economic conditions have forced some projects to delay construction. One local developer, Ben Lesher of Parcel B Development, said that since 2021, interest rates have doubled and construction costs have gone up 35%.

The new units should create more options, and possibly more price competition among developers a welcome sight for renters in a county where demand for rental units outpaces the rest of the state.

According to U.S. Census data, only 2.5% of the roughly 62,500 rental units in Lancaster County were vacant in 2022, compared to 4.8% statewide.

Brad Mowbray, senior vice president and managing director of High Real Estate Groups real estate division, recently reported at a forum on the countys real estate that the average rent for a Lancaster County apartment increased 3.5% to $1,433 in 2023, compared to a national average increase of .9%.

Among subsidized affordable units, the shortage is more severe. Two in five Lancaster County residents are cost-burdened, meaning they pay more than 30% of their income on rent, according to the nonprofit Hourglass Foundation.

Just 322 of the units currently proposed would be subsidized affordable units. In 2020 the U.S. Department of Housing and Urban Development suggested that Lancaster County needs 18,000 new affordable units to serve all of its cost-burdened renters.

1. Former St. Joseph Hospital, approved/proposed, 386 units

Projects by multiple developers comprise the citys largest proposed housing development, located in and around the former hospital at 250 College Ave. Two of them are scheduled to begin construction this spring: a $63 million project from Maryland-based Washington Place Equities to convert the former five-story hospital into 185 market-rate apartments, ranging from 700-square-foot one-bedrooms to 1,000 square-foot two-bedrooms, and rents that will depend on market conditions when it is completed in 24 months; and a five-story, 64-unit subsidized affordable housing project from HDC Midatlantic at 213 College Ave., designated for households earning between $10,000 and $45,000 per year 12 of which are reserved for people with intellectual and physical disabilities and rents between $220 and $998 per month.

Washington Place Equities has approval for 56 townhomes surrounding the hospital, but has listed the project for sale at an undisclosed price.

HDCs future plans include 30 subsidized affordable units in a wing of the former hospital and another 45 on a vacant lot at 838 Marietta Ave. Lancaster Lebanon Habitat for Humanity plans to build six owner-occupied units at 913 Wheatland Ave.

2. 500 N. Queen St., approved, 244 units

Apartments proposed in a mixed-use development at 500 N. Queen St. have been delayed indefinitely due to economic issues.

Exton-based Hankin Group got planning commission approval in 2022 for two five-story buildings with a mix of one- to three-bedroom units as part of a $100 million development including retail as well as medical offices which are currently under construction. Hankin got approval last April to split the project into phases, and temporarily build a parking lot on the apartment site. The developer said it still hopes to complete the apartments before land development approval expires in May 2027.

3. The Yards, approved, 226 units

Apartments ranging from studios to two-bedrooms at 1147 Lititz Pike in Lancaster city have been approved but remain on hold until a county judge rules on a neighbors lawsuit over the projects zoning approval.

The Yards, a $59 million project, includes two five-story buildings, 2,000 square feet of retail, a pool, fitness room, and a clubhouse inside the inn building, which dates to 1750 and will be relocated to a different part of the site. Rents will depend on the market when units become available, but 45 units will be subsidized affordable apartments for households making less than 60% of the areas median income or $51,600 for a three-person household, according to the developer, Parcel B Development.

4. 43 W. King, proposed, 150 units

A proposed six-story, $35 million project incorporating the facade of 43 W. King St., got approval from the citys historical commission in 2022, but still has still not been submitted for land development approval.

Plans shown to the historical commission in 2022 included 150 one- and two-bedroom units and 10,000 square feet of retail space.

5. El Capitan Coffee, proposed, 148 units

A proposed apartment complex including the El Capitan Coffee warehouse at 301-341 E. Liberty St. is on hold. Its owner continues to operate a business park on site while looking for a buyer to take over the project.

Rezoned from industrial to mixed use in 2021, the 2.3-acre site is currently listed for sale for $5.3 million. Owner Larry DeMarco had previously proposed a new building with 104 apartments a mix of one- and two-bedroom units ranging from 616 to 800 square feet, in addition to 44 apartments in the historic warehouse.

6. Mosaic, approved, 146 units

Lancaster Countys tallest building, approved for construction at 17 W. Vine St., is scheduled to break ground in late 2024, about six months later than expected, so developer Willow Valley can try to sign more residents to contracts. The $90 million, 20-story luxury retirement community is scheduled to be completed in 2027.

Nonrefundable fees which include nursing and memory care if needed range from $642,600 up front and $4,923 per month for two-bedroom, 1,592 square-foot units, to $1,432,600 up front and $6,943 per month for the largest, three-bedroom, 3,338 square-foot penthouse units.

7. 202 N. Queen St., under construction, 142 units

A 12-story apartment building with first-floor retail space, Lancaster Countys seventh tallest building is under construction at 202 N. Queen St.

Berger Developments project includes mostly 700-square-foot, one-bedroom units, and some studios and two-bedrooms. Amenities include a fitness room and sixth-floor roof terrace. Berger declined to share rents, but said last year that they would be between $1,300 and $2,000.

8. 232 N. Prince St., proposed, 130 units

A new seven-story building is set to replace the former offices of Benjamin Roberts at 232 N. Prince St., incorporating two historic building facades along Prince Street. Developer Parcel B Development hopes to get planning commission approval and begin construction sometime in 2024.

Units in the $29 million building will range from 309-square-foot micro-apartments to 925-square-foot two-bedrooms with rents depending on the market when it opens.

9. Stadium Row 2, approved, 96 units

An expansion of Stadium Row Apartments at 812 N. Prince St. planned just outside the right field fence of Clipper Magazine Stadium got city planning commission approval this month, but has no current construction timeline.

Apartments in the $21 million, five-story addition will range from 460-square-foot studios to 1,000-square-foot two-bedrooms, with rents depending on market rates when construction is completed, according to developer Parcel B Development. A first-floor cafe on Prince Street is planned, along with a new, larger fitness room.

10. 201 N. Queen St., proposed, 70 to 90 units

A proposed $10 million, four- to six-story addition to the six-story Red Rose Transit Authority Garage would have studios and one-bedroom units with rents between $1,100 and $1,600 and some affordable units subsidized by the owner. Approval from the city planning commission, the state Department of Transportation, and the Federal Transportation Administration is still required.

11. 347 N. Prince St., under construction, 72 units

A new seven-story apartment building with first-floor retail at 347 N. Queen St. in Lancaster city will begin leasing this spring in advance of a July opening.

Plans include a mix of studio and one-bedroom, market-rate units ranging from 550 to 850 square feet, with rents between $1,500 and $2,000. The retail space has not been leased yet, according to the developer, Bowery Development Co.

12. 116-122 N. Prince St., approved, 72 units

A seven-story apartment building at 116-122 N. Prince St. includes units ranging from 525-square-foot studios to 1,700-square-foot three-bedrooms, and first-floor retail space.

The citys historical commission and planning commission have both approved the project.

If that happens, and construction costs are favorable, work could begin this spring and be completed 18 months later, according to co-developer Don Herman. Construction costs will also determine the cost to rent the units.

13. 221-227 N. Prince St., proposed, 63 units

Two historic buildings at once proposed for conversion into apartments sold in September as former owner Steve Groff faced foreclosure after owning the properties for less than a year.

Groff had attempted to revive a project originally proposed by development company Eberly Myers, which lost the buildings to foreclosure in October 2022. Eberly Myers first attempt to develop the site as a high rise apartment building failed in 2019.

New owner Integrity First Capital of York County has not announced any development plans for the site, which is home to Roburritos and Limitless Lancaster Fitness. Integrity First CEO Paul Miller did not respond to a request for comment.

14. 800 S. Queen St., under construction, 52 units

Construction of subsidized affordable apartments and a 6,800-square-foot retail store on the site of the former Rebmans store at 800 S. Queen St. in Lancaster city is underway and scheduled for completion this fall.

Units in the $15 million, four-story building will range between 700 and 1,800 square feet. All units are reserved for households making less than 80% of the areas median income, with rents starting at $1,000 per month.

15. 215 N. Queen St., approved, 51 units

The property at 215 N. Queen St. is currently for sale for $995,000, including approved plans for an unbuilt six-story apartment building, after its developer put the project on hold due to increased construction costs. Development company Eberly Myers originally received city planning commission approval in 2020.

Plans include 51 one-bedroom units, 555 square feet each, which were set to rent for $1,000 to $1,500, as well as a 1,500-square-foot eatery.

Here are major construction projects across the county and the latest information about where they stand.

1. Greenfield North, approved, 628 units

An approved expansion of High Real Estate Groups Greenfield development includes 600 apartments and 28 townhomes comprising the largest proposed development in the county. While site work is underway for the project, High is only moving ahead with building two warehouses right now. It says market conditions need to improve before it begins work on the housing.

2. Oregon Village, proposed, 554 units

Oregon Villages developers continue to appeal Manheim Townships 2022 rejection of a zoning permit for the project. But earlier this year, they sold a 25-acre property which had been proposed for a 120-room hotel and the majority of the housing in the project, raising questions about the developments future prospects. The $120 million plan also calls for replacing the Oregon Dairy market and restaurant with larger facilities.

3. Rockvale, proposed, 504 units

One- to three-bedroom units are proposed inside 15 new four-story apartment buildings and one mixed-use retail building. New Jersey-based developer Fernmoor homes, which bought Rockvale in 2022 for $30.5 million, declined to share rental costs.

A spokesperson for Fernmoor said it hopes to have final approval for the first four buildings, with 128 units, by April. If approved, Fernmoor plans to begin work immediately, and have units available in 24 months. Phase 2, including the remaining units, a clubhouse, pool and walking trails, could be submitted for approval this fall.

4. Stehli Mill Lofts, Manheim Township., under construction, 165 units

Currently under construction and scheduled to open this summer, the $40 million, two-story conversion of the Stehli Silk Mill at 619 Martha Ave. in Manheim Township includes 165 units and 10,000 square feet of retail space.

Stehli Mill Lofts, led by Maryland-based Knight Street Capital and CAM Construction, includes a mix of studio, one- and two-bedroom apartments ranging from 725 to 1,575 square feet. Rents will range from $1,400 to $2,200 per month.

5. The Foundry, Manheim Township, under construction, 96 units

A three-story apartment complex located at 1036 Manheim Pike in Manheim Township is under construction, with units available in June, according to property management company, Boyd Wilson.

The Foundry includes one- and two-bedroom units ranging from 832 to 1,111 square feet, with rents between $1,872 and $2,500. Amenities include a pool, fitness center and dog park.

6. Bausman Place, under construction, 54 units

Rental applications are currently being accepted for subsidized affordable apartments under construction on Charles Street in Lancaster Township. Scheduled to open in May, Community Basics Inc.s Bausman Place includes units reserved for hearing/vision impaired residents, households experiencing homelessness, and young adults experiencing homelessness, as well units with access for people with disabilities.

The $17.5 million project consists of five, three-story apartment buildings with a mix of one- to three-bedroom units that range from 660 to 1,200 square feet in size that rent for $656 to $1,367 per month with utilities included. Applications are available by contacting 717-735-9590 or info@communitybasics.com.

7. 321 Manor Ave., Millersville, proposed, 52 units

An older adult community at 321 Manor Ave. in Millersville is still in the design stages, according to Landis Quality Living, which is developing it along with HDC MidAtlantic and property owner Immerse International. It would include a mix of one- and two-bedroom units with 11 subsidized affordable units.

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Here's the status of major apartment projects in Lancaster County - LNP | LancasterOnline