JV Acquires New Jersey Value-Add Community

Chatham Village Apartments was sold by Madison Hill Properties for $35.3 million.
Chatham Village. Image courtesy of Gebroe-Hammer Associates

A joint venture of Stolar Capital, Vertical Realty and EverWest Real Estate Investors LLC have purchased Chatham Village Apartments, a 118-unit property in Short Hills, N.J. Gebroe-Hammer Associates oversaw the transaction, in which Madison Hill Properties sold the asset for $35.3 million.

Located at 500-555 Main St., the two-story Chatham Village is a garden-style community located within a residential enclave distinguished by an array of architectural styles. Forty of the apartments at Chatham Village feature large one-bedroom floorplans, while the remaining 78 are two-bedroom residences. The apartments range in size from 710 to 850 square feet.

Apartment interior features and finishes include high-speed Internet access and hardwood floors. Amenities include three laundry facilities. The property was built in three phases, each separated by about a half decade, between 1952 and 1963.

Chatham Village Apartments was one of three properties in New Jersey’s Short Hills region that [were] part of a larger portfolio,” Gebroe-Hammer Executive Vice President Niko Nicolaou, told Multi-Housing News.

In each of the three deals, Nicolaou exclusively represented the sellers and collaborated with the firm’s market specialists to procure the buyers. “The Gebroe-Hammer team was able to successfully market the properties individually and streamline the contract-to-close process for each transaction.”

In a region where more than half of all apartment communities were built prior to 1970, and where there are high barriers to entry, Chatham Village Apartments is a candidate for value-add positioning, the property’s buyers have noted.

Booming neighborhood

Chatham is a higher-end New York City suburb located 15 miles west of Newark, N.J. Its downtown district, which spreads out from the intersection of Main and Passaic Streets, is known for its locally-owned shops, eateries and other small businesses. For those who prefer more shopping choices, the region’s premier retail hub Short Hills Mall is 13 minutes away.

Chatham Village residents benefit from easy access to downtown Chatham, as well as multiple transit conveniences. A NJ Transit station providing direct access to Midtown Manhattan is located one-half mile from the property.

Routes 24 and 124, with connections to the Garden State Parkway, are among the area’s regional roadways. The New Jersey Turnpike/I-95 and I-78 are also easily reached from Chatham Village.

Other attractive qualities about the market include Chatham’s highly-rated elementary, middle and high schools. Also nearby are three major institutions of higher learning, including Drew University, Farleigh Dickinson University and College of Saint Elizabeth, located a five-, seven- and nine-minute drive from Chatham Village respectively.