Solomon plans a $3-million upgrade, which will include kitchen and bath renovations, the addition of dishwashers and washer/dryers in some units, and improved landscaping and lighting.
At $52,631.58 a unit, the price is just under the $54,700-median quoted for the area in a third-quarter report from the Philadelphia office of Marcus & Millichap. It is in line with Solomon's new strategy. The Mountainside, NJ-based company, once a major converter of apartments to co-ops, recently shifted its focus entirely to the rental market and specifically to the rehab of under-valued properties.
"Based on our successes in other parts of Bucks County and other parts of the country and some careful market research, we determined that the market for well-located, quality, affordable apartments is as strong as ever in suburban Philadelphia," says Solomon's managing director Fred Petak. "Bucks Landing, in particular, represents a prime opportunity to replace an underutilized, undervalued community with class A, affordable rental units," he adds.
Rental rates at Bucks Landing range from studios for $595 a month to three-bedroom/two-bath units advertised for up to $1,025 a month on the complex's website. The property is approximately 90% leased.
Bucks Landing is Solomon's third multifamily acquisition in Pennsylvania in two years. Last year it acquired the Berkshire Hills complex in Reading and Lehigh Crossing in Bethlehem, for an aggregate of 1,238 units. Last year it also acquired four New Jersey multifamily assets with an aggregate 166 units. It currently owns, operates and manages approximately 2,000 units in nine Pennsylvania communities and more than 6,000 units in this and its home state.
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