Ausonia Apartments in Highland Park — Courtesy: The Kislak Co. Inc.
By Joshua Burd
An investment group has sold a 26-unit apartment building in Highland Park as part of a 1031 exchange involving properties in New Jersey and Pennsylvania, The Kislak Co. Inc. said.
The brokerage firm announced that it represented the seller of Ausonia Apartments, a five-story building at 501-505 Raritan Ave. that also includes two ground-floor retail units. The property changed hands for $5.3 million.
The entity also sold Arbor Grove Apartments, a 104-unit garden property at 957 and 960 Hale St., 941 North Warren and 990 Washington St. in Pottstown, Pennsylvania. Kislak brokered the $8 million sale, noting that the now-former owner purchased the Highland Park and Pottstown properties in 1999 and 2002, respectively.
After selling the properties, the investment group purchased Castle Club Apartments, a 158-unit complex at 254 West Trenton Ave. in Morrisville, Pennsylvania, for $20 million as part of the 1031 exchange.
Kislak Vice President Justin Lupo arranged the transactions. The deals totaled more than $33 million.
“This series of transactions is a clear demonstration of the importance of Kislak’s real estate advisory role in the multifamily investment market,” Lupo said in a prepared statement. “The sellers of Ausonia and Arbor Grove made a strategic decision to market the properties with us on an exclusive basis, subject to an exchange.
“Concurrently with our marketing program, it was imperative to leverage our client relationships in order to identify an ideal exchange property. The purchasers of Arbor Grove and Ausonia also trusted our ability to complete the sales in a timely manner. The sellers of Castle Club, who also have a long term relationship with Kislak, understood the importance of satisfying the exchange as the timing provided an opportunity for a quick and quiet disposition of their asset.”