Gebroe-Hammer Associates Closes $5.1 Million 1031 Exchange of Eagle Run Apartments in Hi-Nella, N.J
South Jersey's Residential Boroughs Appeal to Multi-Family Investors.
- Philadelphia, PA-NJ (1888PressRelease) March 01, 2011 - Investors who have an appetite for South Jersey multi-family properties fed the region's stable occupancy rates in residential communities like Hi-Nella, where the percentage of renters typically exceeds the state average, according to Gebroe-Hammer Associates. The Livingston, N.J.-based commercial real estate brokerage firm recently closed the $5.1 million sale of Eagle Run Apartments, a 120-unit, 98-percent occupied garden apartment complex in this borough.
Joel Schwartz, executive vice president, represented the seller, Village of Hi-Nella LLC, and the buyer, a long-time Gebroe-Hammer client, in the sale, which involved a 1031 Exchange and the recent sale of 54 units at Brooklawn Apartments in nearby Brooklawn, N.J. The South Jersey market specialist orchestrated the Ni-Nella transaction to complete the back end of the exchange on behalf of the seller of the Brooklawn property.
Schwartz, who has been with Gebroe-Hammer since 1980 and possesses exceptional market and deal-structuring expertise, identified and proposed Eagle Run Apartments as an exchange vehicle and facilitated the rapid closing. He originally sold this complex to the seller back in 2003 as part of a three-building portfolio involving 623 units.
"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. It became evident that Eagle Run Apartments was consistent with this investor's acquisition and property repositioning strategy," said Schwartz. "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. Features include spacious floor plans and closet space, wall-to-wall carpeting, air conditioning and on-site parking and laundry services. The well-landscaped complex is popular among students attending nearby colleges and universities.
"Several colleges, including New Jersey's Camden Community College, Rutgers University-Camden, Rowan University, Gloucester County College and Temple University in Philadelphia, are within a radius of approximately 12 miles," said Schwartz, who noted these institutions also are key employers for the region, along with Kennedy Memorial Hospital-University Medical Center in Stratford.
"The economic recovery continues to be a work-in-progress. 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," said Ken Uranowitz, managing director. "Due to a non-existent pipeline of new multi-family construction and a general industry undersupply of existing for-sale product, the competition for multi-family properties is fierce and is expected to remain as such throughout 2011."
Legal counsel for the Eagle Run trade was provided by Thomas Cohn, Esq., of Coughlin Duffy LLP in Morristown, N.J., and Lawrence Raiss, Esq., of Feinstein, Raiss, Kelin & Booker, LLC of West Orange, N.J.
Gebroe-Hammer Associates is the region's most experienced and respected commercial real estate brokerage firm specializing in multi-family, retail and office property investment sales. With a concentration on suburban and urban high-rise, mid-rise and garden-apartment properties, the firm also markets mixed-use and free-standing office and retail properties throughout New Jersey, New York and Pennsylvania.