The largest is a two-property complex in Atlantic City: the 102-unit Atlantic City Apartments and 72-unit Berkley Garden Apartments. The remainder of the portfolio includes 22-unit Morelane Garden Apartments in the Germantown section of Philadelphia; 95-unit Apartments for Modern Living in West Chester, PA; 56-unit Medeso Manor in Baltimore, MD, and 81-unit Crosby Square in Chester, PA.
Bob Cohen, SVP of commercial investments for Prestige, handled the listing, marketing and sale of the portfolio. All of the properties were owned by regional partnerships that had owned them for at least 15 years under a limited dividends program with reduced mortgage interest rates. The financial tax advantages had "run their course," Cohen said, a circumstance that precipitated the sale.
He said there were "complexities in the overall negotiations when dealing with the bureaucratic and governmental requirements associated with HUD and the Department of Community Affairs," and added, "the regulations, restraints and delays created a complex set of circumstances in order to close these deals."
Following an agreement of sale for four of the five properties, for example, 150-day notice of the sellers' intent to pay off existing mortgages and close the transactions had to be provided to tenants and city and state officials. Cohen handled these financial aspects of the deal for the buyers.
In addition to negotiating the sale, Prestige also negotiated an additional seven-year management contract at the properties between the buyers and Community Management Co.
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