Penn Properties sells 208 garden-style units to Silverstone Properties
BLACKWOOD, NJ — Berkadia announced the sale of a 208-unit, garden-style, multifamily portfolio in Blackwood. Senior managing director Nat Gambuzza and senior director Trevor Fiebel of Berkadia Morristown led the transaction on behalf of the seller, Penn Properties, while also procuring the buyer, Silverstone Properties.
The Blackwood Portfolio includes three separate communities located within Gloucester Twp. in Camden County, including Blackwood Falls, Blackwood Terrace, and Foxcroft Apartments. The portfolio sold for $23 million, reflecting a per-unit price of $110,576. The properties were 85% occupied at the time of the sale. Both Blackwood Falls and Blackwood Terrace had low leverage agency debt, which was assumed by the purchaser.
“This was a challenging transaction to get across the finish line due to the loan assumption process which took several months,” said Gambuzza. “Our team was creative in navigating a structure that kept both the buyer and seller engaged in the process, while there were so many outside forces involved that made this transaction difficult. From the time we entered into contract through the closing, there were so many changes that took place within the GSEs, and the servicers tremendously slowed down our process. All of this needed to be managed during gyrations in interest rates, occupancy levels, and managerial friction.”
“The purchaser, Silverstone Properties, is a new buyer in the Camden County market, which saw value repositioning the assets,” said Fiebel. “The vacancy was viewed as an opportunity to implement their business plan immediately following closing, which involves a value-add renovation schedule in order to stabilize the assets while also increasing revenue.”
Located at 440 N Black Horse Pike, 227 Washington Ave., and 71 Lakeland Rd., the property affords convenient access to Camden, Philadelphia, and other areas of interest.
Berkadia, a joint venture of Berkshire Hathaway and Jefferies Financial Group, is one of the leaders in the commercial real estate industry, offering a suite of services to multifamily and commercial property clients. Through integrated mortgage banking, investment sales, and servicing platform, Berkadia delivers comprehensive real estate solutions for the entire life cycle of our clients’ assets.