Our team was retained to sell an apartment building portfolio, as part of a workout agreement between one of the largest New York thrift lenders and Connolly Properties, a regional operator with over 3,000 units in New Jersey and Pennsylvania. The properties included 270- and 63-unit buildings in Trenton, NJ; and 108-, 36-, and 20-unit buildings in Allentown, PA.
We offered the properties through an extensive six-week, national marketing and sale campaign that led to an open outcry auction, with the secured creditor having the right to credit bid.
The marketing program generated a total of 641 inquiries, 219 registered property inspection parties, 133 Due Diligence Packet sales, and 60 registered bidding parties at the auction. All of the buildings were sold on a non-contingent and all-cash basis for $26.6 million.
Carteret Arms, a 270-unit building located in Trenton, NJ, was sold at a 5.8% cap rate for $13,910,000. This was a record-breaking price at the time, and far exceeded our seller’s expectations.
Happy with the result, we were hired subsequently by the bank to sell another six apartment buildings in Plainfield, NJ. Following that sale, another regional bank hired us to sell their Plainfield, NJ, portfolio as well.