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WARRINGTON, PA-Fort Lee, NJ-based the Orbach Group has paid $15 million, or just over $101,351 a unit, for the Apartments at Newpointe. The asset, located at 955 Easton Rd., was built in the mid- to late-1970s and is 100% occupied, according to Meyer Orbach, president.

John McFadden and Bob Miller of CB Richard Ellis represented both Orbach and the seller. The seller is the Barness Organization, a local residential developer and owner.

This represents Orbach Group's first, but not its last, multifamily acquisition in Pennsylvania, Orbach tells GlobeSt.com. "The suburban communities north of Center City Philadelphia are a very strong developing residential market. Bucks County has experienced a growth in demand for rental apartments, and this growth has been reinforced by additional commercial development in the immediate vicinity." He adds that "this acquisition is a logical extension of our base. We have several properties just across the border in Mercer County [NJ], and will announce another Pennsylvania acquisition soon."

The average rental rate for a two-bedroom unit at the Newpointe facility is $950 a month. Orbach says his firm plans "an extensive capital improvement program, concentrating on unit-by-unit upgrades as the apartments turn over," and believes "rents will adjust upward in the prevailing market." He says the total investment will be approximately $500,000 and include not only improvements to units, but also to the tennis courts and exterior.

Within the past 24 months, Orbach Group has acquired more than 1,300 multifamily units--valued at approximately $150 million--in the New Jersey and Pennsylvania marketplace. It also owns and manages office properties in the tri-state area and provides a full range of commercial real estate services.

Instant Insights /

Orbach Group Enters Pennsylvania With $15M Multifamily Buy

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