Gebroe-Hammer Associates Sells River Villas Garden Apartment Complex for $3M
Gebroe-Hammer Associates has announced the $3 million trade of River Villas, a fully leased 44-unit garden-apartment complex in Palmyra, N.J. Executive vice presidents Joseph Brecher and Joel Schwartz represented the seller, Harbour View, and procured the buyer, a long-time Gebroe-Hammer client.
"This sale reaffirms that buyers are seeking to expand their portfolios within stable multi-family investment markets, like Southern New Jersey, where rent growth persists in close proximity to employment hubs," said Brecher. "Anytime a property of this caliber comes to market, there is a high level of interest among investors because available properties are in short supply industry wide."
Located at 5019 Harbour Dr., on the Delaware River in Burlington County, N.J., River Villas is just 20 minutes from downtown Philadelphia and 40 minutes from Trenton. The four-building complex boasts 44 spacious two-bedroom apartments with unique floor plans in the heart of Palmyra's historic, tree-lined neighborhood. Each unit has a private entrance, patio/balcony, washer/dryer, central air conditioning and an eat-in kitchen with pantry. Situated minutes from the Cross Tacony-Palmyra Bridge, community features include a clubhouse, swimming pool and tennis courts. Mass transit options range from SEPTA, NJ Transit and Amtrak rail lines to car and bus routes via the New Jersey Turnpike, Route 295 and Route 73.
"This property is exceptional, as indicated by its 100 percent occupancy at the time of sale, and favored among commuters and small families because of its extensive amenities," said Schwartz, who noted the buyer has planned minor interior upgrades. According to Gebroe-Hammer, area occupancy levels are 95 percent, and average rental rates are $950.
Legal counsel for the seller and buyer was provided by Minta Kay, Esq. of New York, N.Y., and Allen Poppowitz, Esq., of Roseland, N.J., respectively.
"Performing properties like River Villas are attractive in this market because buyers are highly receptive to assuming existing mortgages, as was the case here. 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," said Ken Uranowitz, managing director.
Uranowitz also noted there is a direct link between tenant and investor demand. "Multi-family 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 said. "Other real estate classes, such as retail and office, are the most sensitive to recessionary forces. Multi-family 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."
Gebroe-Hammer Associates specializes in the sale of multi-family, retail and commercial properties. In addition to its strong presence in New Jersey, Gebroe-Hammer is active throughout Pennsylvania, including Philadelphia, and New York. Clients include private owners, REITS, private equity firms and other institutional investors.
About Gebroe-Hammer Associates
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