HI-NELLA, NJ-Gebroe-Hammer Associates has closed a $5.1-million 1031-exchange sale of Eagle Run Apartments on behalf of the owner, Village of Hi-Nella LLC, to an unnamed buyer, a longtime Gebroe-Hammer client, GlobeSt.com has learned exclusively.
Eagle Run is a 120-unit garden apartment complex that is 98% occupied. The other component in the exchange was the sale of 54 units at Brooklawn Apartments, also in New Jersey. The Hi-Nella transaction completed the back end of the exchange on behalf of the seller of the Brooklawn property.
“At the time of closing for Brooklawn Apartments last September, the seller was in immediate need of a replacement property to utilize the sale proceeds for an exchange,” says Joel Schwartz, executive vice president of Livingston, NJ-based Gebroe-Hammer. “It became evident that Eagle Run Apartments was consistent with this investor’s acquisition and property repositioning strategy.” Schwartz originally sold Eagle Run to the Village of Hi-Nella in 2003. “The buyer plans to implement an extensive renovation project that includes completing a kitchen and bath remodeling initiative undertaken by the seller.”
Located at 150 E. Atlantic Ave., Eagle Run’s 15 all-brick buildings are comprised of 96 one-bedroom and 24 two-bedroom units of 655 and 800 square feet, respectively. The complex is popular among students attending nearby colleges and universities, including Camden Community College, Rutgers University-Camden, Rowan University, Gloucester County College and Temple University in Philadelphia.
“The economic recovery continues to be a work-in-progress,” says Ken Uranowitz, managing director of Gebroe-Hammer. “Because job creation and the housing market are the premier challenges, an overwhelming majority of people are staying in place as renters, which strengthens the tenant pool, occupancy rates and appeal among investors and lending institutions. Due to a nonexistent pipeline of new multifamily construction and a general industry undersupply of existing for-sale product, the competition for multifamily properties is fierce and is expected to remain as such throughout 2011.”
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