LANCASTER, PA-The Kislak Co. has orchestrated the $46.1 million sale of Hershey Heritage Village, a 518-unit apartment complex in Lancaster, PA, to the Solomon Organization. Kislak president and co-managing director Robert Holland represented both parties, in the transaction.
Solomon was able to take advantage of deferred taxes on a previous sale through a Section 1031 exchange, Holland tells GlobeSt.com. In January, Kislak handled the $36.7 million sale of a four-property multi-family portfolio with a total of 430 units in Bethlehem, PA, for Solomon.
“This was an extraordinary opportunity to acquire a single asset with more than 500 units in a very desirable location and market,” Holland says. “The seller was the original developer of the property and had owned it for nearly 40 years.” The property, which was about 95 percent occupied at the time of the sale, includes 41 two-story brick garden-style apartment buildings.
Solomon has renamed the complex as the Kensington Club. The developer plans to begin renovations immediately on its sixth property in Lancaster by adding a gym, media room and residence club to the already existing community center, which includes tennis courts, an outdoor pool and other outdoor recreation.
The one-, two- and three-bedroom units, some of the largest in Lancaster County, will also be renovated with new kitchens and bathrooms. Each apartment has a separate entrance and most have a balcony or patio, noted Holland.
At the same time as it purchased in Lancaster, Solomon completed purchase of a 178-unit complex in Pleasant Valley, NY, said Marc Solomon, founder for the Solomon Organization. The company is also building its portfolio in the Hudson Valley. “These properties fit our overall strategy to buy and improve well-located properties and rent them at reasonable rates,” says Solomon. “Both properties give us the opportunity to provide a nice standard of living by making improvements to modernize the property’s private and common areas.”
The Lancaster property is located about one hour from Philadelphia, near many regional employers, Holland notes. With a population of approximately 60,000, Lancaster is Pennsylvania's 8th most populous city.
Financing or the purchase was arranged by Patricia Patriarca of The Provident Bank.
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