Viking Buys 433-Unit Apartment Complex

One number that has been disclosed, however, is what the new owner will spend to bring Cherry Hill Towers up to modern standards--an estimated $45 million. "Cherry Hill Towers originally opened back in 1958, and for decades was one of Cherry Hill's premier luxury rental communities," according to Joseph Verdejo, senior managing director in Insignia/ESG's Philadelphia office. Verdejo and Jim Sheehan of the same office of Insignia/ESG were the only brokers involved in the deal, representing the seller.

That seller was Dr. Charles Edwards, a well-know orthopedic surgeon from Baltimore who has also been dabbling in real estate in the bi-state region, including his involvement in the redevelopment of Philadelphia's Pier 9. Cherry Hill, which lies just east of Camden, is a 75,000-population New Jersey suburb of Philadelphia.

"In recent years, the property deteriorated and had become an area of concern for township officials," according to Verdejo, who notes that Edwards bought the property back in the mid '90s with the intention of converting it to condominiums.

But it will stay a rental property, according to Viking officials. The sale was contingent upon Viking Associates gaining the necessary approvals to start work on redeveloping Cherry Hill Towers, and with those approvals in hand, the new owners plan to start work immediately on the two-building complex. No timeline has been released.

"The cost of the renovation, which will be in excess of $100,000 per unit, will be several times greater than the acquisition cost," says Sheehan. And the new and improved Cherry Hill Towers is expected to be one element of a growing "town center" element that's evolving in this sprawling suburban-style township.

"This renovation, together with the imminent redevelopment of the site of the defunct Garden State Park racetrack [by Realen Development], will help establish this location as the town center of Cherry Hill," Sheehan says. Other elements of that evolution include the new Hillview Shopping Center and a 300-unit luxury garden-style apartment complex recently completed adjacent to Cherry Hill Mall by MCW Development.