WOODBRIDGE, NJ — The Kislak Company, Inc., the dominant investment real estate sales firm in the tri-state region, announced the $46,100,000 sale of Hershey Heritage Village, a 518-unit apartment complex located at 1330 Wabank Road in Lancaster, Pennsylvania. Kislak president and co-managing director Robert Holland represented both parties, private investors, in the transaction.
The sale of Hershey Heritage Village marked the successful completion of a Section 1031 exchange. In January, Kislak handled the $36,700,000 sale of a four-property multifamily portfolio with a total of 430 units in Bethlehem, Pennsylvania. The seller of the Bethlehem portfolio purchased Hershey Heritage Village.
“This was an extraordinary opportunity to acquire a single asset with more than 500 units in a very desirable location and market,” said Holland. “The seller was the original developer of the property and had owned it for nearly 40 years.”
Hershey Heritage Village consists of 41 well-maintained two-story brick garden-style apartment buildings with mansard roofs. The property includes very large one, two and three-bedroom units with the majority of units having at least two bedrooms. Each unit includes a separate entrance, individual heat and air conditioning and most have either a balcony or patio. Half of the tenants are responsible for the cost of heat and hot water based on how the property was originally developed. The property also includes a variety of amenities including a swimming pool with large sun deck, barbecue areas, a basketball court, and tennis courts.
The properties are located in suburban Lancaster in south central Pennsylvania near many regional employers one hour from Philadelphia. With a population of approximately 60,000, Lancaster ranks eighth in population among Pennsylvania's cities. The Lancaster metropolitan area’s population of over 500,000 ranks it 101st among the nation’s largest metropolitan areas and the second largest in the south central Pennsylvania.
“Given the strong regional rental market, the purchaser was looking to expand its local presence,” added Holland. “This was also a value-added opportunity. By upgrading the units’ kitchens and bathrooms, the property will command higher rents.”
Financing was arranged by Patricia Patriarca of The Provident Bank. The seller was represented by Robert Bachner, Esq. of Phillips Nizer LLP of New York City. The purchaser was represented by Alan Hammer, Esq. of Brach Eichler, LLC of Roseland, New Jersey. At the time of closing, the property was approximately 95% occupied.
The Kislak Company, Inc., which is headquartered in Woodbridge, New Jersey, is recognized as the dominant investment sales company serving the multifamily and retail markets. Established in 1906, Kislak’s market leadership position and longevity are due to its ability to offer clients a personalized, hands-on approach, coupled with the unrivaled expertise of its long-tenured team of professionals. Kislak’s prestigious client base includes individual investors and owners, partnerships, financial institutions, and REITs. The firm’s 25 professionals provide comprehensive market coverage throughout New Jersey, New York, Pennsylvania and Delaware.
Now in its 106th year, Kislak was among a select group of firms recognized as a 2011 Power Broker by CoStar Group, Inc. for multifamily sales transactions.