(To read more on the multifamily market, click here.)
CHESTER, PA-Lakewood, NJ-based J&B Elberon Properties LLC has acquired Walnut Chestnut Park apartments at 322 E. 23rd St. for $6.6 million, which translates to $47,826 a unit. The two-building, 138-unit complex was built in 1965.
The seller, Bala Cynwyd-based WCCP LP, has upgraded the grounds and parking area and begun replacing kitchen cabinets in the units, and the new owner will complete that process, according to Rob Holland, senior vice president and co-managing director of the Woodridge, NJ-based Kislak Co. Holland and Barry Waisbrod, a Kislak associate, represented both the buyer and the seller in this transaction.
Of the seller, Holland tells GlobeSt.com, "they'd significantly improved the property, and the market was right for a sale. There is unprecedented demand for this product type." The complex was 95% occupied at the time of the sale, and Holland says the rental rates range from $615 per month for a one-bedroom unit to approximately $700 per month for two-bedroom apartments.
During a recent market presentation, John McFadden of CB Richard Ellis confirmed Holland's view of the multifamily market saying, "2006 was a banner year for apartment sales in Greater Philadelphia," a trend he expects to continue this year. According to Waisbrod, the buyer paid 40% of the price, or just north of $2.6 million in cash for Walnut Chestnut Park, and assumed an existing mortgage.
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