The 132-unit Valley Ridge complex is at 6714 Lower Macungie Rd. here, and the 96-unit Mill Run property is located at 320 Powder Mill Ln. in Emmaus. They were 95% occupied at the close of the sale. As GlobeSt.com reported, Solomon acquired the assets in May 2005 as part of a five-property portfolio, for which it paid an average of $54,878 a unit.
The Woodbridge, NJ-based Kislak Co. negotiated the earlier sales transaction and also represented both Solomon and Emess in this one. Robert Holland, Kislak's SVP and co-managing director, says, "The two complexes are at least 30 years old and they needed a lot of work. Solomon upgraded the complexes significantly and completely renovated between 15% and 20% of the 228 units."
After adding new kitchens, carpeting and appliances, he tells GlobeSt.com, Solomon raised rents in those units and could show the buyer the upside potential in the properties. As an example, he says, "The rent rose from $667 a month to $944 a month following upgrades on a two-bedroom unit at Valley Ridge. Rent for a one-bedroom rose from $657 a month to $797 a month.
"Solomon decided to spin off these two properties at a gain in order to concentrate on the renovation of the other three in the portfolio. Those three are in Bethlehem, where the company already has a substantial presence," he adds.
Solomon and Emess have been Kislak clients for more than 30 years, according to Jeffrey Wiener, Kislak's president and co-managing director, who worked with Holland on the transaction. Other participants included lawyer Edward Bortz, who represented Emess, and Allen Popowitz of the WolfBlock law firm, who represented Solomon. Meridian Capital Group secured a first mortgage through Sovereign Bank.
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