HFF Arranges NJ Sale
- Jan 12, 2018
Florham Park, N.J.-based HFF has arranged the sale of The Highlands at Cherry Hill Apartments in Cherry Hill, N.J. The 170-unit luxury multifamily property is 16 years old and 97 percent leased. The HFF team represented seller Equity Residential and procured buyer Friedkin Realty Group.
Sprawling across a dozen two-story residential buildings, the community features one-, two- and three-bedroom apartment homes. Residents can take advantage of amenities including clubhouse with lounge, fitness center, business center, grilling area, resort-style swimming pool with Jacuzzi, valet dry cleaning service and parking available in a mix of direct access, hallway access and detached garages, as well as surface spaces.
“The greatest challenge? Great asset, good market, the upsides of the deal, there were a lot of positives,” HFF senior managing director Jose Cruz told MHN. “But per unit the price was on the higher side. So we had to convince everyone that there was future value there, and it was a justifiable number and there would be rent growth in the future.”
Near employment centers
The property is situated on just more than 11.25 acres in Cherry Hill, an affluent Philadelphia suburb with an average household income of $117,000.
Just 15 minutes from city center Philadelphia by virtue of its location along the area’s premier commercial thoroughfare, The Highlands at Cherry Hill is convenient to job hubs in Philadelphia and New Jersey along the New Jersey Turnpike, I-295 and I-676. It’s also close to a number of high-end shopping centers, among them The Marketplace at Garden State Park and the 1.2-million-square-foot Cherry Hill Mall.
The HFF investment advisory team representing Equity Residential was comprised of senior managing directors Cruz and Mark Thomson, managing director Kevin O’Hearn, senior directors Stephen Simonelli and Carl Fiebig and director Fran Coyne.
“The property’s currency occupancy of more than 97 percent combined with its access to retail and superior amenities made it a highly desirable investment for several public and private entities,” Cruz said.
Robust buyer interest
Added Thomson: “We were very encouraged by the activity on this transaction. Despite the smaller property size of 170 units, the market showed a strong interest from both institutional and private groups. By leveraging our national platform, we procured 27 tours. Ultimately, the deal was awarded to Friedkin Realty, a San Francisco-based firm and first-time buyer in the New Jersey and Philadelphia MSA. We always take pride in moving new capital to the region, as was the case on this transaction.”
HFF and its affiliates operate out of 25 offices as leading providers of commercial real estate and capital markets services to the global commercial real estate industry.