981 North Delsea Drive in Franklin Township — Courtesy: A.J. Sussman Co.
By Joshua Burd
A private investor has paid $5.1 million for a 48-unit apartment complex in Gloucester County’s Franklin Township, according to a brokerage team with A.J. Sussman Co.
In a news release, the firm said it represented the seller and longtime owner in the transaction at 981 North Delsea Drive, the site of the municipality’s only multifamily complex. The buyer is now planning a full renovation over the next 24 months, A.J. Sussman said, noting that the now-former owner had maintained current rents at 10 percent below market with 100 percent occupancy.
Aside from its 48 rental homes, the complex includes three commercial units, the news release. The brokerage firm added that the property, which sits on three acres, was built in the 1960s and has septic and well water for each home, a rarity for the Pinelands.
The sale price of $100,000 per unit equates to a capitalization rate of 6 percent, based on the proforma, the news release said.
“I cannot say enough about my client,” said Alan Sussman, principal of A.J. Sussman. “Being the only complex of this nature in the township, it was a ‘hot’ investment opportunity, but the former owner’s meticulous attention to detail and industry knowledge greatly helped close the deal in record-breaking time. I am proud to have helped make it happen.”
