Orange and East Orange, N.J. are attracting renters who commute to Manhattan. That lured buyers to the Essex County portfolio and two other communities in the same county. Six multifamily rental properties, four of them comprising a portfolio, have sold in the region for a combined $26.4 million in a transaction brokered by Marcus & Millichap’s Ozturk-Gatto Group.
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The sale components are 120 Halsted St., a 42-unit Class A property in East Orange; 259 Reynolds Terrace, a 29-unit property in Orange that sold for $3.35 million; and The Essex County Portfolio, a 130-unit, four-building portfolio with properties in both East Orange and Irvington, which sold for $13.8 million.
Marcus & Millichap’s Senior Partners Richard Gatto and Fahri Ozturk and Essex County Specialist Thomas Cleary represented the seller of the apartment communities. The team also procured the buyers for all transactions.
“For one of the deals, a major challenge was a CMBS loan that needed to be assumed to conclude the transaction,” Gatto told Multi-Housing News. “Through our relationships and experience we were able to help manage that process to get the transaction across the finish line.”
Each of the four buildings in the Essex County Portfolio has undergone recent renovation. The portfolio as a whole was 98 percent occupied at the time of sale. The transaction presented a chance to purchase a substantial collection of properties with upside and stable cash flow. The recent unit upgrades added granite countertops and stainless steel appliances.
Constructed in 2016, the 120 Halsted St. apartment community is located one block from the Brick Church train station. It stands five stories tall and encompasses 35,529 square feet. Units feature stainless steel appliances, granite countertops and hardwood floors.
Located off South Central Ave. in Orange, the community at 259 Reynolds Terrace was fully occupied at closing. The asset features 20 one-bedroom and nine two-bedroom apartments, and 29 surface parking spots.
Orange and East Orange are sought by growing numbers of renters for the public transportation and highway conveniences they provide. They are situated approximately 18 miles from Manhattan, and 13 miles from Newark International Airport.
In July, Marcus & Millichap brokered the sale of a multiple community transaction on the West Coast. Village Drive and Carlmont Park Apartments, two multifamily communities in Belmont, Calif., changed ownership for a combined $25 million.