PHILADELPHIA–The current strong appetite for distressed and below-market multi-family properties as value-add opportunities generated three recent sales handled by Gebroe-Hammer Associates in the Philadelphia metropolitan area, its brokers tell GlobeSt.com.
The three transactions amounted to a combined $30.5 million and involved 897 units located throughout the city and surrounding suburbs.
The brokerage team of Joseph Brecher and Eli Rosen represented both sides in the $15.9 million sale of Coachman Manor in Lindenwold, NJ. The buyer was local real estate investor Philip Balderston.
“This acquisition is a sound investment because of the opportunity to implement a renovation program that will render the complex even more competitive in today's strong rental market,” says Rosen.
The 546-unit complex has one- and two-bedroom/one-bath and three-bedroom/two-bath layouts.
Coachman Manor is within minutes of a PATCO train station and offers easy access to the Atlantic City Expressway, NJ Turnpike and I-295. Center City Philadelphia is about 25 minutes away and Trenton, NJ, is about 50 minutes away.
In Bucks County, G-H represented a limited partnership led by Balderston in the $10.4 million acquisition of Edgely Estates, located in Levittown. The property is comprised of newly renovated studio, and one- and two-bedroom units in a courtyard-style complex located near the area's major highways as well as a SEPTA line.
“Coachman Manor and Edgely Estates are examples of the types of properties for which investors are casting a wider net to add value” says Brecher. Both complexes were less than 80% occupied at the time of sale and are being repositioned to maximize each market's strong rents and occupancy levels, he says.
G-H also represented the seller of Lindley Towers in the Logan section of North Philadelphia which was sold to a local investor for $4.3 million. The 104-unit property has a mix of studio, one- and two-bedroom apartments, most of which have newly renovated kitchens. Situated near the Broad Street corridor and Roosevelt Boulevard, the property is close to transit links: SEPTA's Logan Station two blocks away and bus routes with stops adjacent to the property.
“In addition to Philadelphia's strong renter pool traditionally comprised of hard-working families and empty nesters, it is seeing an influx of new college graduates from area universities who have decided to remain in the city and work here,” said Brecher in discussing growing demand for the units.
G-H is based in Livingston, NJ, and specializes in all types of multi-family properties throughout New Jersey, New York and Pennsylvania. The firm also markets mixed-use and free-standing office and retail properties on behalf of long-term clients, including private owners, REITS, private equity firms and other institutional investors.
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