Forest Hill Towers, an apartment community in Newark, N.J., will benefit from a preferred equity investment from multifamily owner and operator Pensam Residential. The investment facilitated the $73 million acquisition of the property.
Located at 515 Mount Prospect Ave., Forest Hill Towers is a 16-story, 401-unit community built in 1960. It features studio, one- and two-bedroom apartments that extend in size from 600 to 900 square feet. Features of residences include balconies showcasing views of Manhattan and the Orange Mountains, individual climate control, microwave ovens, hardwood floors in select units and large closets. Among common-area amenities is a 24-hour laundry center. Occupancy at the time of sale was 97.5 percent.
“Due to (its) strict guidelines, successfully structuring preferred equity behind Fannie Mae is arduous and not achievable for most groups,” Noah Miller, Pensam vice president of acquisitions and finance, told Multi-Housing News. “We have made sure to be up to date on Fannie’s latest guidelines and have continued to have an open line of communication with (the GSE) to ensure we are structuring our documents in an acceptable manner.”
Forest Hill Towers is less than 20 miles from New York City. Multiple transit options—including commuter trains, buses and major highways—are readily accessible by residents of the apartment community, as is Newark International Airport. A large green space, 360-acre Branch Brook Park, is situated a few blocks away.
This follows a few weeks after Pensam made its third preferred-equity investment in Denver, facilitating the $69 million recapitalization of Loft 9 Apartments.