Kislak sells Southgate apartments in Phillipsburg, NJ for $7.5 Million
President Holland & S.V.P. Keenan arrange exclusive sale of 48 units in Warren County
Phillipsburg, NJ — The Kislak Company, Inc. announced the recent sale of Southgate Apartments, a 48-unit garden-style apartment community located at 100 Arrowhead Court in Phillipsburg, Warren County, for $7.5 million.
Kislak marketed the property on an exclusive basis on behalf of the longtime owner with president Robert Holland and senior vice president Joseph Keenan handling the assignment, Keenan also procured the purchaser. The parties were not disclosed.
Southgate Apartments is a well-maintained 48-unit multifamily property that offers spacious apartments with in-unit washers and dryers, gas heat, central air conditioning, balconies, and ample on-site parking. Many units have been upgraded with newly remodeled kitchens featuring stainless steel appliances and luxury plank flooring. With strong occupancy and average rents estimated to be 15% to 20% below market, the property provided stable in-place income and significant value-add potential through continued unit renovations and future rental growth.
The property had been owned by the seller, a long-time Kislak client, for approximately 40 years. During that time, the ownership maintained the property in excellent physical condition while keeping rents well below market, creating a compelling investment opportunity for buyers seeking operational upside.
Kislak’s marketing campaign generated significant interest, attracting eight property tours and nine competitive offers. Three of the offers were within 95% of the final purchase price, demonstrating the depth of demand for quality multifamily assets with meaningful value-add potential.
Keenan said, “The strong response to our marketing campaign highlights the continued demand for well-located multifamily properties that offer the opportunity to create value through thoughtful capital improvements and operational enhancements. Southgate Apartments is a classic value-add investment. The property was exceptionally well maintained by a long-term owner, but rents remained below market. The buyer recognized the opportunity to renovate units as they turn over, enhance the property’s curb appeal and create new tenant amenities, which will ultimately increase the property’s long-term value.”
Joseph Keenan joined Kislak in 2006 and specializes in the sale of multifamily and other investment properties throughout northern New Jersey. He received the firm’s Rookie of the Year award in 2008 and was promoted to a senior vice president in 2019. Keenan’s investment sales total more than $300 million.
Robert Holland joined Kislak in 1984, is one of the firm’s all-time leading sales producers and became President in 2012. In addition to overseeing the company and managing a team of salespeople, he specializes in the sale of multifamily and other investment properties with a primary focus in central and eastern Pennsylvania.
