(Read more on the multifamily market.)
ALLENTOWN, PA-David Connelly of North Plainfield, NJ has acquired a portfolio of two small, aged, but well-leased, multifamily properties here for $62,500 a unit. The assets, which have an aggregate of 56 units, are Julian Court Apartments at 1521 W. Union St. and the Livingston Apartments at 1411 W. Hamilton St.
Livingston, which has 36 units, was built in 1928 and is approximately 93% occupied. Current rents range from about $600 a month for a one-bedroom unit to $1,095 a month for a three-bedroom layout.
Julian Court, a 20-unit property five blocks from the Livingston, was built in 1940 and is 95% occupied. Current rents range from approximately $500 a month for a studio to $730 a month for a two-bedroom unit.
"This sale shows that there is still high demand for well located apartment assets in Allentown," says Nicholas Sabatino in the national multi housing group of the Philadelphia office of Marcus & Millichap. He represented the seller, Monroe, NY-based Israel Ekstein, and also procured the buyer.
"These are both well maintained properties in locations with high barriers to entry of new competitive stock," he tells GlobeSt.com. "There's upside opportunity to bring rents up to market rate, and the assets have little or no deferred maintenance.
"As it has become increasingly difficult to find decent yields in primary markets, investors have begun to look more closely at secondary and tertiary markets," Sabatino adds. "The Lehigh Valley is seen by many as a high growth market."
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