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PHILADELPHIA-The Mountainside, NJ-based Solomon Organization has sold four multifamily rental properties aggregating 324 units to a buyer identified only as a Long Island, NY-based real estate developer for $20.5 million. The properties were all built in the late 1960s and early 1970s, and Solomon has owned them for the past five to eight years.
The assets are: 96-unit Liberty Crossing at 3101 Woodhaven Blvd. here; 80-unit Salem Crossing at 3550 Street Rd. in Bensalem; and 36-unit Mills Crossing at 6750 Millcreek Rd. and 112-unit Country Club at 1228 New Rodgers Rd., both in Levittown. Occupancy ranges from 94% to 97%, and the monthly rentals average $650 for one-bedroom units and $950 for two-bedroom layouts.
Marshall Rosen, Solomon's managing director, tells GlobeSt.com, "we evaluated each property, the group of properties and the marketplace for product like this. All were value-added buys for us. They were C-plus assets in B-plus locations when we acquired them, and we brought them up to the quality of their locations. Having accomplished this, it seemed the right time to sell."
The price tag translates to just above $63,271 per unit. A mid-year report from the local office of Marcus & Millichap puts the median selling price for multifamily assets throughout the MSA at $73,000 a unit, up 8% from the same time a year ago. The same report forecasts a 3.5% rise in rent rates. Rosen says he understands that the new owner will keep these as rental properties.
In the 1990s, Solomon recognized that Bucks County was poised for a surge in growth. Over the past 15 years it has invested more than $100 million in more than a dozen assets in suburban Philadelphia and repositioned them. It continues to own nine multifamily rental properties in Pennsylvania, including Bucks Landing in Bucks County. "We certainly plan more acquisitions in Pennsylvania," Rosen says, "and we're now aggressively looking."
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