A collection of garden-style apartments in Long Branch recently sold for $3.5 million, one of two recent deals announced by The Kislak Co. Inc.

Senior Vice President Daniel Lanni handled the assignment on behalf of the seller, SW 366 Prospect LLC, according to a Sept. 23 announcement from the Woodbridge-based commercial real estate brokerage. Lanni also procured the purchaser for the 18-unit Morris Mews property, CRE Realty Group LLC.

The 12,600-square-foot property located at 366 Prospect St. was completely occupied at the time of sale, according to Kislak, presenting a value-add opportunity due to its below market rents and lack of local rent control.

As of this week, Rent.com pegged the average rent in Long Branch for a one-bedroom at $2,562 per month and $3,205 per month for a two-bedroom unit. In the municipality, the website reported 85% of local rent ranges are above $2,101 per month.

“I previously arranged the sale of the property to the seller in 2020 and four years later identified an aggressive purchaser in need of an I.R.C. Section 1031 exchange who proceeded at a 5.1% cap rate,” Lanni commented. “The offering included an existing mortgage with a year remaining at a 3.5% interest rate. The attractive financing will assist in the execution of the purchaser’s value-add strategy.”

Built in 1966, the brick two-story complex includes 16 one-bedroom units and two two-bedroom apartments as well as onsite parking and laundry facilities.

Morris Mews is less than 1 mile southeast of Pier Village, the Long Branch boardwalk and the shore. It is one block from the Long Branch train station, with direct service to New York City.

Lakefront community

At the end of August, Kislak secured another multifamily sale in Atlantic County.

Located at 6200 Old Harding Highway in Mays Landing, the 44-unit Indian Oaks Apartments complex sold for $5.85 million, according to the firm.

Kislak marketed the property on an exclusive basis on behalf of the owner, Indian Oaks Apartments LLC, which held the site for nearly 30 years. Executive Vice President Joni Sweetwood handled the assignment as well as procured the buyer, Oaks Manor LP.

“The offering presented an attractive investment opportunity to acquire a well performing property consisting of mostly townhouses with many recent improvements, upside potential and development potential on 40-plus acres in Atlantic County not far from Atlantic City International Airport,” Sweetwood said of the deal.

Located across from Lake Lenape, Indian Oaks Apartments comprises 11 buildings with 44 apartments and townhouses situated on more than 40 acres. The property includes many recent capital improvements, according to Kislak, including new roofs, HVAC systems, kitchens and appliances.

The unit mix includes: 10 one-bedroom and six two-bedroom apartments in addition to 28 two-bedroom townhouses. Tenants handle all utilities except water, Kislak said.

Situated within Hamilton Township, the Mays Landing site is approximately 12 miles from Atlantic City International Airport, 20 miles northwest of Atlantic City and 50 miles southeast of Philadelphia.

In June, Kislak arranged a record deal down in Atlantic County. The $20.5 million sale represents the city’s largest in at least 10 years, according to the firm.