(Read more on the multifamily market.)

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ALLENTOWN, PA-David Connelly of North Plainfield, NJ hasacquired a portfolio of two small, aged, but well-leased,multifamily properties here for $62,500 a unit. The assets, whichhave an aggregate of 56 units, are Julian Court Apartments at 1521W. Union St. and the Livingston Apartments at 1411 W. HamiltonSt.

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Livingston, which has 36 units, was built in 1928 and isapproximately 93% occupied. Current rents range from about $600 amonth for a one-bedroom unit to $1,095 a month for a three-bedroomlayout.

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Julian Court, a 20-unit property five blocks from theLivingston, was built in 1940 and is 95% occupied. Current rentsrange from approximately $500 a month for a studio to $730 a monthfor a two-bedroom unit.

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"This sale shows that there is still high demand for welllocated apartment assets in Allentown," says Nicholas Sabatino inthe national multi housing group of the Philadelphia office ofMarcus & Millichap. He represented the seller, Monroe, NY-basedIsrael Ekstein, and also procured the buyer.

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"These are both well maintained properties in locations withhigh barriers to entry of new competitive stock," he tellsGlobeSt.com. "There's upside opportunity to bring rents up tomarket rate, and the assets have little or no deferredmaintenance.

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"As it has become increasingly difficult to find decent yieldsin primary markets, investors have begun to look more closely atsecondary and tertiary markets," Sabatino adds. "The Lehigh Valleyis seen by many as a high growth market."

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