Suburban Philly Property Trades for $34M
The apartment community was part of the Rental Assistance Demonstration program and received a 20-year subsidy contract. The previous owner improved multiple aspects of the 1950 buildings.
By Tudor Scolca
The Crestbury
Lincoln Avenue Capital LLC acquired the Crestbury, a 392-unit apartment community in Camden, N.J. It was purchased free and clear of any debt for $34.4 million, approximately $88,000 per unit. The property was marketed exclusively on behalf of the seller, Tryko Partners, by Marcus & Millichap investment specialists Andrew Townsend, Ridge MacLaren and Clarke Talone. Recently, the company also closed the sale of a student housing community in Champaign, Ill.
The 50-building community was built in 1950. It offers 172 one-bedroom and 220 two-bedroom units, ranging in size between 550 and 650 square feet. It is situated on over 18 acres of land, at 2552 S. 8th St. in Camden, N.J. Several employers are near the property, such as The Creative Arts Morgan Village Academy, Holtec Technology Campus, HB Wilson Elementary School, or ABC Supply Co. Interstates 676 and 76 are nearby, providing access to the Philadelphia metro.
Long-term safety
Prior to selling the asset, Tryko Partners invested $3.6 million in capital improvements. “The property was part of the Rental Assistance Demonstration program and received a new 20-year subsidy contract. The seller recently upgraded the flooring, windows, roofs, and boilers throughout the property, which made the asset attractive and a great long-term investment,” said Andrew Townsend in a prepared statement.
According to Yardi Matrix, average rent is $606 per month. The property was also subject to a 15-year permanent loan of $14 million, originated by Wells Fargo Bank in 2013, when Tryko Partners acquired the asset.
Image courtesy of Yardi Matrix
