Lehigh Valley Private Equity Fund buys apartments near Freedom HS for $1.5M total
Assets do not have to be huge to attract the attention of investment groups.
Lehigh Valley Private Equity Fund (LVPEF) has acquired the Tanglewood Apartments in Bethlehem for $1.4 million. Northampton County records recorded the sale on Feb. 4.
Tejas Gosai of LVEPF said that including expenses, the total cost was about $1.5 million.
The purchase is one more in a string of local private equity (PE) deals, as investor groups have acquired real estate, makers of batteries and industrial parts, a company that makes Asian food and a lawn service.
The LVPEF purchase reflects what residents and local governments spend a lot of time talking about: housing is scarce and prices are going up.
The 2066 Chester Road property, across the street from Freedom High School and East Hills Middle School, has nine rentals for a per-unit price of about $167,000. The building has 10,340 square feet total and was constructed in 1971.
Tanglewood has seven 2-bedroom and two 1-bedroom units, Gosai said, and "is fully occupied by dependable tenants" according to the fund's website.
"We own properties in Allentown, Bethlehem and Easton," Gosai said during a telephone interview. The Chester Avenue site in Bethlehem "is one of the nicest, based on location and condition," he said.
The building is near churches and schools, and has been renovated.
"It's one of our best acquisitions to date," he said. The fund owns about 150 units and "We're looking to buy more," Gosai said.
Private equity investors pool money to purchase businesses and properties that can turn a profit.
Lehigh Valley Private Equity Fund sees opportunity in housing in the region, spurred on by demand and the COVID-19 pandemic.
"The local Lehigh Valley market is still supported by strong demand for single-family homes and apartments," LVPEF's website says. "The demand continues to be much greater than the supply, and we believe this will limit downside risk through the balance of this year."
LVPEF says the fund's goal "is to consistently produce high yields and protect individual investor ROI (return on investment) through investment in the local Lehigh Valley sub-market, a fast-growing sub-market following the post COVID-19 exodus" from cities such as New York and Philadelphia.
The fund's activities include lending, along with short- and long-term acquisitions.
In June 2023, the fund said it bought the Susquehanna Street apartments in Allentown.
LVPEF is open to "accredited investors" who meet standards for wealth, income or financial education. The minimum investment in the fund is $50,000, according to LVPEF's website.
The fund is based at 5000 W. Tilghman St., South Whitehall Township, west of Allentown.