Olivia Bunescu March 5, 2025 Source: Multi-Housing News
The Pennsylvania developer has leveraged its vertical integration capabilities and stayed active. COO Michael Hankin expands.
Over the past six decades, family-owned Hankin Group has been active on the residential development front through its dedicated division, bringing online more than 7,000 residencies and 2,500 apartments to date, most of them in Pennsylvania.
Adopting a build-and-hold long-term strategy, Hankin has been developing mixed-use projects with a particular focus on sustainable living. We asked Michael Hankin, COO & President of Hankin Apartments, to highlight key trends he’s seeing in the local multifamily market, and expand on how he’s tackling development challenges to deliver environmentally friendly projects in today’s tough economic climate.
How is the multifamily development landscape evolving in the markets you’re active in?
Hankin: Across the region, we have seen a slowdown in development stemming from escalating land values. Due to high interest rates and construction costs, there is a disconnect between asking prices and what developers are willing to pay. We don’t expect to see an influx of new multifamily development until the market is balanced. Developers are also being more creative in identifying financing solutions, such as exploring joint ventures.
The multifamily communities that are succeeding are the properties that have a clear vision and can differentiate themselves in the market. Renters aren’t looking for a ‘big box’ product, they want lifestyle-centered, destination communities.
As an example, we’ve seen incredible demand in Hankin Group’s 800-acre Eagleview, which features over 1,000 amenity-rich residences, 2.4 million square feet of distinctive commercial office space and over 50,000 square feet of prime retail space. The mixed-use community is anchored by Eagleview Town Center, a vibrant community hub with a variety of dining, shopping, entertainment and recreation opportunities.
Across the board, we are also seeing a push from local governments around environmental sustainability, which has a huge advantage for residents and the community at large, along with the demand for more affordable and workforce housing options.
To what extent have high construction costs and supply chain disruptions impacted your ability to keep projects on time and on budget?
Hankin: Hankin Group is a vertically integrated real estate company, allowing us more control, consistency and cost savings across the lifespan of development. Fortunately, we are well-equipped to navigate high-cost environments because our business is based on quality, sustainability and long-term ownership. Many developers build, lease up and immediately sell to capitalize on a quick flip. Our motto is ‘build long term, hold long term.’ To some extent, fluctuations in entering costs aren’t as relevant because we are holding properties and accounting for long-term appreciation.
What unique opportunities and challenges does Pennsylvania’s multifamily housing market present, particularly when looking at suburban vs. urban areas?
Hankin: Both suburban and urban development presents unique opportunities and challenges in Pennsylvania, primarily around land availability and density.
Cities and boroughs often understand the benefits of density and mixed-use development, but there is more limited real estate. However, this also provides more opportunities for redevelopment, such as our River Station project in Downingtown, Pa.
After completing the 242-unit Keva Flats community in 2019, the company kicked off the second phase of the project in September 2024, planning to add two new buildings and 96 units. Image courtesy of Hankin Group
Suburban markets, alternatively, have greater availability of land, which is an advantage, but often municipalities have zoning obstacles and a lower appetite for adding housing. Zoning regulations have good intentions, but if not kept current, can impede strategic planning and development. Parking is a great example. For instance, multifamily buildings typically utilize approximately 1.4 parking spaces per unit, whereas many ordinances require 2.5 spaces per unit. Building parking to sit empty is a poor use of land and we would much rather utilize this valuable space to deliver community-oriented amenities, such as walking trails, outdoor recreation space or even a town square.
Regardless of where a community is being developed, working closely with the local governing body is key to getting projects across the finish line. Hankin Group’s Keva Flats, a 19-acre sustainable, luxury apartment community in Chester County, Pa., was the direct result of a zoning map change. The Keva property was located within the Office/Laboratory zoning district adjacent to West Whiteland Township’s Town Center zoning district. Working with the Township through a comprehensive planning process, West Whiteland remapped Keva to Town Center Zoning, encouraging added density in the downtown to support existing office and retail.
How do you decide where to develop new multifamily properties within Pennsylvania? Do you focus on certain trends, indicators or insights?
Hankin: Hankin Group is headquartered in Exton, Pa., and we are typically focused on about a 180-mile radius in terms of our development footprint. Our team is well-versed in the local real estate landscape, keeps a pulse on trends and closely monitors key market indicators, such as shifting demographics, population growth, Class A office development, an uptick in lifestyle amenities, an influx of higher-end businesses, university proximity etc.
Moving forward, we’re particularly interested in expanding our footprint in Lancaster and Hershey, Pa. We are currently developing Queen Street Flats in Lancaster in partnership with Penn Medicine Lancaster General Health, which will transform a historic tavern into a three-story, more than 200-unit luxury lifestyle community along with a 30,000-square-foot state-of-the-art medical facility.
We’re excited to do more business in Lancaster, as the city has been fantastic to work with and is poised for considerable growth. From a new Lululemon and Apple store to the nearby Franklin & Marshall campus, we anticipate Lancaster to continue gaining traction in the years to come.
What role does sustainability play in your overall strategic development plan? Can you share some specific examples?
Hankin: To date, Hankin Group has developed 52 Energy Star-certified buildings (with 22 under development), 42 LEED-certified buildings and 1,035 LEED-certified apartment units (with another 951 under development). We strive to serve as a model for developers across the country and showcase the real and meaningful impact we can have on the environment by prioritizing sustainability and environmentally conscious design.
This commitment is exemplified in our new Hamilton Passive House, the country’s first market-rate Phius ZERO apartment community. The net-zero, 32-unit luxury building meets rigorous, third-party standards for quality, durability, health, safety and cost-optimized conservation. Notable sustainability features include cutting-edge R40 insulated walls, super-insulated triple pane windows, water-conserving bathroom fixtures, energy recovery units, central hot water and rooftop solar photovoltaic array, which will eliminate electricity bills for residents.
We also recently announced a $2.4 million floodplain restoration at Keva Flats, the state’s largest LEED Gold-certified apartment community. As an identified priority by the Pennsylvania Department of Environmental Protection, the initiative is one of the first in Chester County and will deliver significant environmental benefits for the environment, Township and local community.
How have you adapted to meet the needs of today’s renters, especially in terms of wellness, shared spaces and technological amenities?
Amenities at Keva Flats include a rooftop terrace with a grill area, a multi-sport simulator room, a resident lounge with an entertainment kitchen and bar, a clubhouse, a swimming pool and a fitness center, among others. Image courtesy of Hankin Group
Hankin: While the ‘amenities arms race’ of the past several years has cooled off, today’s generation of luxury renters expect more than just basic living spaces, Wi-Fi and a community room. In-unit smart home technologies, including smart locks and thermostats, remote entry and USB outlets are a priority.
We also focus on offering renters thoughtful, efficient amenity spaces to help residents thrive in their everyday lives. For example, at Hamilton at Eagleview and Keva Flats, residents enjoy top-of-the-line lifestyle offerings, including a resort-style pool and pool deck, golf and multisport simulator, clubhouse with entertainment kitchen, coffee bar, fitness club and much more. With the permanence of remote work, offering private and shared workspaces in our amenity suite has been incredibly popular with residents.
We anticipate wellness to be a continued emphasis for multifamily communities in 2025 and beyond. Developers will need to go beyond the traditional fitness center, and focus on offering more of a boutique, high-end gym experience—think yoga studio, Peloton, Echelon Fitness Mirror and tech integration.
How do you balance aesthetics with functionality? What are the key design principles that guide each project from conception to completion?
Hankin: Our team follows New Urbanism planning, which prioritizes walkability, connectivity, quality architecture, mixed-use design and traditional neighborhood structure. We are always thinking about how our communities will improve their quality of life. Aesthetically, is the project beautiful and is it a place I would love to live? Does the project fit into the surrounding context and add value? Are we taking a people-first design approach? How can we integrate events like community races, concerts and farmers markets to foster vibrancy?
Overall, we try not to emphasize trends, which quickly go in and out of style but instead invest in quality. With our in-house design, development and construction teams, we can always ensure our built product meets our high standards.
Tell us a bit about your expectations for multifamily development this year.
Hankin: Given current interest rates, we don’t anticipate a dramatic increase in multifamily development in 2025. Perhaps 2025 will be the year of acquisitions, with an opportunity for experienced developers to acquire new or vintage properties and improve profitability through enhanced management, value-add upgrades or renovations.