SOUTH ORANGE, NJ−Marcus & Millichap's Thomas McConnell and Kevin McCrann have closed the sale of a 30-unit South Orange apartment complex that had not been on the market in more than 65 years.

“There were 17 competitive offers on the deal,” which McConnell calls “staggering,” but understandable due to a lack of supply for voracious multi-family investors. The property also had the advantage of being located within walking distance of an NJ Transit station and Seton Hall University. It sold for $3.75 million.

“The seller was wanting to retire as a residential landlord,” says McConnell, who set the seller up with a M&M team that is investigating opportunities for a 1031 tax exchange purchase of a net-lease property.

“We see this as a trend moving forward, that people will continue to do that,” McConnell says. “Older folks will be exiting as landlords, and looking for more passive real estate income sources, such as net-lease properties where the owners' major responsibility is collecting rent.”

The South Orange property, Village Court apartments, was built and operated by the same family since 1948.

Major capital improvements were made to the building over the past few years, including a new roof, furnace, FIOS system, sidewalks, intercom system, lighting, and a back-up power generator.