WOODBRIDGE, N.J. – The Kislak Company, Inc. announced the recent sale of Vassar Gardens Apartments, a complex with 60 residential units in Poughkeepsie, New York, for $5,050,000. The sale price per unit was among the highest in the local market at $84,000. Vice presidents Janet Bortz and Andrew Jonas represented the parties in the transaction.
Vassar Garden Apartments is a 60-unit, two-story garden style apartment complex located in the Township of Poughkeepsie, New York. The property includes 24 three-bedroom units, 20 two-bedroom units and 16 one-bedroom units, totaling 53,800 rentable square feet.
For a decade, the Hudson Valley has been a popular alternative for New Yorkers looking to escape high rents in the city’s competitive environment. While single family homes are prevalent in the local market, there is also a strong demand for apartments. Investors are also increasingly aware of and desirous of owning in the strengthening market.
Bortz sold the property ten years ago and led Kislak’s recent efforts to market and sell it on an exclusive basis. Her long-term involvement and success in the market enabled her to provide the current purchaser with comprehensive market information, comparable sales and the property’s history.
According to Bortz, the active market in the area meant that price was not a point of contention. "The property sold very close to the listing price, which demonstrates the strength of the market,” she said. “The buyer has an upside with rental increases and possible repositioning. The property has historically been close to full occupancy over the seller’s 10-year ownership. "
An important feature of the transaction was that it was a part of an Internal Revenue Code Section 1031 tax-deferred exchange, which allows for deferment on the payment of capital gains taxes when the proceeds from a qualifying property sale are reinvested in the purchase of another similar property. The deferment frees equity from the sale of one property for use in the purchase of another similar property. In addition to equity preservation, investors use this approach for several reasons:
– Leverage: The exchange can facilitate the purchase of a much larger property with equity and some financing.
– Diversification: The exchange can be made for property in a different geographic area or one that has a different purpose (for example, retail to multifamily)
– Management Relief: Executing the exchange to acquire property that includes on-site management for a more hands-off role.
IRC Section 1031 tax deferment helped make the Vassar Gardens sale possible, and the new owner has plans for improvements on the 60-unit complex, which is just a few blocks from Vassar College in Poughkeepsie.
"The buyer and seller worked together to make the transaction as stress-free as possible for everyone,” said Jonas. “The buyer plans to significantly upgrade the property inside and out.”
For more than ten years, Bortz has specialized in the sale of investment real estate throughout the Hudson Valley and northern New Jersey. Her understanding of investment real estate transactions, important local market trends, employment, demographics, regulations and area competition has earned her a reputation as a valued and relied-upon resource. Bortz’s recent investment sales total more than $50,000,000 and include over 500 units in New York and New Jersey.
About The Kislak Company, Inc.
The Kislak Company, Inc., which is headquartered in Woodbridge, New Jersey, is a leading commercial real estate brokerage consistently recognized for its investment sales success. 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 30 professionals provide comprehensive market coverage throughout New Jersey, New York, Pennsylvania and Delaware.
Now in its 109th year, Kislak was among a select group of firms recognized as a 2014 Power Broker by CoStar Group, Inc. for multifamily sales transactions in northern New Jersey and this was the firm’s ninth consecutive recognition.