"This sale reaffirms that buyers are seeking to expand their portfolios within stable multifamily investment markets, like Southern New Jersey, where rent growth persists in close proximity to employment hubs," Brecher tells GlobeSt.com.
Located at 5019 Harbour Dr., on the Delaware River in Burlington County, River Villas is 20 minutes from downtown Philadelphia and 40 minutes from Trenton. The four-building complex features 44 two-bedroom apartments, each with a private entrance, patio/balcony, washer/dryer, central air conditioning and an eat-in kitchen with pantry.
"Performing properties like River Villas are attractive in this market because buyers are highly receptive to assuming existing mortgages, as was the case here," says Gebroe-Hammer managing director Ken Uranowitz. "In today's conservative lending environment, this provides savings with regard to new loan procurement costs and fees--not to mention additional value--if the assumed interest rate is below the current rate levels."
Uranowitz also notes there is a direct link between tenant and investor demand. "Multifamily investment is driven by a variety of factors, including a weak single-family home market that is feeding high overall occupancy rates resulting from a lack of alternative living options for in-place renters," he says. "Other real estate classes, such as retail and office, are the most sensitive to recessionary forces. Multifamily properties are the least affected because of the need to put one's head on a pillow at night, regardless of economic conditions. Apartment buildings remain the most resilient and reliable commercial real estate investment in today's economy."
The property was 100% occupied at the time of sale, says Schwartz, who adds that the buyer is planning minor interior upgrades. According to Gebroe-Hammer, area occupancy levels are 95%, and average rental rates are $950. Legal counsel for the seller and buyer was provided by Minta Kay, Esq. of New York, NY and Allen Poppowitz, Esq., of Roseland, respectively.
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