Why 2 Apartment Complexes Sold Higher Than Expected in WNY

Why did two northern Erie County apartment complexes sell for decidedly more than the regional per-unit average?

Part of the answer comes from supply and demand issues.

Another part comes from financial institutions more likely to lend capital for income-ready, multi-family properties than any other form of commercial real estate - at least in the current market place both locally and nationally.

“Apartments do well,” said Cassandra Whitney, a broker with M.J. Peterson Real Estate Corp. “Investors can get a good return. Plus, inventory is tight.”

Two deals, both of which closed on July 31 in the Erie County Clerk’s office, bring home that point.
In the first deal:

• Investors E&R Horizons LLC paid $2.5 million for the 16-unit apartment complex at 100-116 Churchcroft Lane in Amherst.

The apartments had been owned by PL Properties Inc. and were built in 1968.
All 16 units are leased.

The deal works out to $156,250 per apartment or 70% more than the regional per-apartment average of $91,701 as tracked by CBRE Upstate New York.

• And, the Town of Tonawanda, investors TEOS Manor Inc. paid $1.225 million for the 12-unit apartment complex at 2763 Sheridan Drive, buying it from Credit Shelter Trust and Joseph Salhab.

The deal works out to $102,083 per unit, or 11.3% above the CBRE-tracked average of

$91,701 per apartment.

The complex was built in 1980.