SCRANTON, PA-The Kislak Company has completed a batch of property sales in eastern Pennsylvania, including four apartment buildings and a mixed-use property. The five buildings went for a total of $21,225,000.
In separate transactions, Summit by the Lake, a 137-unit property in Scranton, sold for $8 million; Willow Gardens, a 176-unit property in Highspire, sold for $5,9 million; the Bethlehem Silk Mill, a 61-unit property in Bethlehem, sold for $5.5 million; Livingston Apartments, a 36-unit property in Allentown, sold for $1 million; and the Abraham Lincoln Hotel and Residences, a mixed-use property with 104 hotel rooms, 52 senior apartments and 53,000 square feet of commercial space sold for $825,000.
“The demand for multifamily properties throughout eastern Pennsylvania remains very strong with local, regional and national investors vying for available properties,” said Robert Holland, Kislak’s president. “We are experiencing a surge of activity from New York City and New Jersey investors given the close proximity to the area and its growth potential.”
Summit by the Lake has 137 one-, two- and three-bedroom units in 12 three-story brick buildings on ten acres near downtown Scranton, Glenmaura National Golf Club, the University of Scranton and Keystone Industrial Park. Each unit has a private patio or balcony and reserved parking. The complex has a tennis court, laundry facilities and 24-hour maintenance.
Kislak previously sold the property to the owner in 1984. Upon marketing it in late 2012, Holland and senior vice-president Joni Sweetwood found a buyer who closed within 45 days. At the time of closing, the property was 95% occupied.
Willow Gardens consists of 176 one- and two-bedroom units in suburban Harrisburg. It has two-story buildings and each unit has a private entrance.
Kislak also previously sold the property to the owner in the early 1980′s. Holland represented both parties, long-time Kislak clients, in the transaction. The sale included an assumption of a Fannie Mae mortgage. Russ Drebin of Meridian Capital Group, LLC assisted the parties with the assumption. At the time of closing, the property was over 90% occupied.
“This was a value-added opportunity,” said Holland. “The seller upgraded approximately one-third of the units and the purchaser intends to upgrade the remaining units.” He said that Harrisburg, the state capital and third-largest city in Pennsylvania, remains a strong rental market due to a strong employment picture and growing private industry.
The Bethlehem Silk Mill offers 61 one-, two-, three- and four-bedroom loft-style units in a converted former silk mill factory, which was renovated in 2010, in downtown Bethlehem. The property is two blocks from Main Street and near Lehigh University, Moravian College and St. Luke’s Hospital. The units have vaulted ceilings, new kitchens with stainless steel appliances, washers and dryers, hardwood floors and new bathrooms. The property includes an elevator and off-street parking.
Kislak had the exclusive listing for the Silk Mill. Holland and vice-president Jonathan Greenberg represented the parties in the transaction, both of whom are longtime Kislak clients At the time of closing, the property was 98% occupied.
“The purchaser owns primarily in New Jersey but was attracted to the incredible quality of this property and its excellent location in downtown Bethlehem,” said Greenberg.
Livingston Apartments has 36 one-, two- and three-bedroom units in a six-story brick elevator building in downtown Allentown. The 50,000-square-foot brick mid-rise building was constructed in 1928 and was a luxury apartment building for many years. The previous owner planned to convert the building to condominiums but ran into financial trouble, according to the seller, and the building was vacant and in disrepair at the time of a foreclosure sale. A bank hired Kislak to market and sell the property.
Kislak procured a purchaser who plans to restore the structure to “its former glory,” according to senior vice-president Matt Weilheimer, who represented both parties in the transaction. “It will again be a premier building and is only a few blocks from a new hockey arena that is under construction,” he said.
The Abraham Lincoln Hotel and Residences is a mixed-use property in downtown Reading with 104 hotel rooms, 52 senior apartments and 53,000 square feet of retail, restaurant, conference and banquet space. The hotel is currently operating as a Wyndham Hotel.
Kislak was engaged by the seller on an exclusive basis to market and sell the landmark property and vice-president Jacob Friedman completed the transaction. “The property was meticulously restored to exacting historical detail and is listed on the National Register of Historic Places,” said Friedman.
The property has three sections: On the top seven floors is the Abraham Lincoln, a Wyndham Hotel, which is comprised of 104 guestrooms and suites. Occupying the four floors immediately below are 52 one-bedroom assisted-living apartments that are affordable for senior citizens. The first three floors were renovated and rehabilitated for retail, restaurant and conference facility uses
The Kislak Company is headquartered in Woodbridge, New Jersey, and operates throughout New Jersey, New York, Pennsylvania and Delaware.