CB Richard Ellis (05/18/2008) – Wayne, PA – May 15, 2008 – The Greater Philadelphia Region of CB Richard Ellis brokered the disposition of two separately owned apartment complexes in Trenton, Mercer County, NJ recently. The properties, Greenwood Avenue Gardens and Beechwood Gardens, combine for 80 individual units and over $4 million. Both sellers were represented by CB Richard Ellis’ Miller/McFadden Multi-housing Group lead by Associate Mark Duszak, who was also assisted by Executive Vice Presidents Robert Miller and John McFadden and Senior Associate Corey Lonberger. “Trenton’s multi-housing market is unique due to its limited supply of stock. Rent growth continues to increase due to strong rental demands,” commented Mark Duszak. “Beechwood Gardens is a great example of a local operator understanding this trend and purchasing a half vacant apartment complex for $50,000 per unit.”
The first property sale, which closed in early April, was for the Beechwood Gardens Apartment Complex in the Hillcrest section of Trenton City for $3.1 million. The 62 unit, four-story apartment complex was built in 1964 and is currently 48% occupied. A concrete block constructed, all brick exterior four-story building, the complex sits on 1.15 acres of land. The building has a flat roof and the opportunity to install sub-meter gas heat. In a tranquil, residential neighborhood with convenient access to parks, major roads, and public transportation, Beechwood Gardens is near Cadwalder Park, Parkway Avenue and North Olden Avenue. It is also approximately two miles from Trenton’s Waterfront Park and The Sovereign Bank Arena.
“The velocity of apartment sales in this market is made up of 50% local owners and 50% out of area buyers,” stated Duszak. These two transactions represent this split with our team attracting an out of area buyer for Greenwood Avenue Gardens.
Closing on April 29th, and in a separate second transaction, CB Richard Ellis Multi-Housing Group brokered the disposition of Greenwood Avenue Gardens. The property, located at 1020 Greenwood Avenue, is comprised of 18 individual units and sold for just under $1 million. Approximately one-block from the New Trenton East Police Station, 95% of the units have been recently renovated at the three-story property. Greenwood Avenue Gardens is situated on .32 acres of land and has an all brick exterior with new hipped roof.
Overall, the City of Trenton’s apartment market occupancy is strong running at 95% or better at all properties. The City of Trenton has both rent control and vacancy decontrol and adjusts the annual rental increase two times per year which is currently at 3.8% per annum. It is located in the hub of the Northeast region and at the core of the Route 1 growth corridor. Trenton’s downtown has nearly 50,000 workers, two institutions of higher learning, and a world-class conference center.