Invesco JV Acquires Majority Interest in New Jersey Property for $161M

Everly Roseland. Image courtesy of Invesco Real Estate

Invesco Real Estate Income Trust Inc. has expanded its multifamily portfolio into the Northeast with a joint venture acquisition with Skylight Real Estate Partners for a majority interest in Everly Roseland, a 360-unit garden-style community in Roseland, N.J., for $160.5 million.

The joint venture purchase was made with a $113.5 million loan from US Bank, according to Commercial Observer. The sale price of the 384,648-square-foot property at 28 Nob Hill Road in the West Essex, N.J., submarket was first reported by CoStar. The property, which has 30 two-story buildings, was owned by Novel Property Ventures of New York City, an affiliate of Skylight, a regional, privately-held real estate investment firm with a focus on multifamily investment and development, in a joint venture since January 2017. Novel acquired the asset from Segal & Segal for $130 million with the help of a $122 million loan, according to Yardi Matrix data.

In October 2019, Novel secured $117.8 million in financing for the property and received a $96.3 million senior loan through MUFG Bank and a $21.5 million mezzanine loan through J.P. Morgan Asset Management. A JLL Capital Markets team of Michael Klein and Matthew Pizzolato represented Novel in that deal. Klein and Pizzolato were also part of the JLL Capital Markets debt advisory team that handled the Invesco and Skylight recapitalization of the property through their joint venture transaction. John Rose and Gerard Quinn from the JLL Capital Markets team were also involved in the new deal.

Everly Roseland, previously known as Nob Hill, is one of the largest multifamily assets in the West Essex County submarket in New Jersey. Through the recapitalization of the asset, Invesco and Skylight will continue executing on the unit renovation program Novel began. Renovations include upgrades to the common areas and exteriors. Skylight will also serve as the property manager. It is the first transaction between Skylight and INREIT. In January, INREIT purchased Rise on Apache, an 833-bedroom luxury student housing community in Tempe, Ariz., from CA Ventures that serves students at the Arizona State University-Tempe campus.

Property Details

R. Scott Dennis, president & CEO of INREIT, said in a prepared statement the REIT is seeing strong demand for affordable, low-density multifamily properties near urban cores as the future of work following the pandemic is changing traditional office commutes. Dennis also noted Roseland is a desirable community with fairly high barriers to new development and the joint venture transaction aligns with INREIT’s multifamily investment strategy.

Andrew Miller, founding partner of Skylight, said in prepared remarks Everly Roseland is a well-performing property with more value-creation strategies still to unlock. The property was 95 percent leased at the time of the sale. Miller noted that Skylight and its affiliate Novel had also started construction of an amenities center as well as the unit upgrades.

The nearly 38-acre property has a tennis court and swimming pool. Other amenities include a fitness center, grilling area, on-site dog park, 10 laundry facilities and individual garage parking. Unit features include washer and dryer hookups in each apartment, hardwood floors and private balconies or patios. Completed in 1980, Everly Roseland has a mix of one- and two-bedroom units ranging in size from 950 to 1,347 square feet with an average of 1,069 square feet.