Khosla Capital JV Buys New Jersey Apartments for $115M
- Apr 29, 2021
Khosla Capital LLC and DKJ Equity LLC have acquired Prospect Place Apartments, a 360-unit multifamily community in Hackensack, N.J., from Kushner Cos. for $114.5 million.
JLL Capital Markets represented the seller to complete the transaction. The team was led by Jose Cruz, Steve Simonelli, Kevin O’Hearn, Michael Oliver, J.B. Bruno and Michael Kavanaugh. Raman Khosla, founder & CEO of Khosla Capital, represented the buyers.
Kushner Cos. had owned the two-building, 428,040-square-foot property at 300 and 310 Prospect Ave. since March 2018, when it acquired the asset from Greystar for $102.5 million, according to Yardi Matrix. Greystone had owned the property since March 2013, when it acquired the asset from Equity Residential as part of a 15-property portfolio deal.
The property consists of one-, two- and three bedroom units. Prospect Place Apartments was recently renovated, including adding in-unit washers and dryers, hardwood-style flooring, stainless steel appliances and granite countertops in some residences. There is upside for the buyers to continue upgrading the original units.
The building is pet friendly and has several top-of-the-market amenities including two fitness centers, game room, swimming pool, resident lounge and business center and garage parking. It was 97.8 percent occupied at the time of the sale. Rents range from $2,092 to $3,102 with an average of $2,427, according to Yardi Matrix data.
The property offers easy access to New York City and the surrounding region from the nearby NJ Transit Anderson Street station and Interstates 80 and 95. Hackensack has more than 9,000 acres of outdoor parks and recreation. The property is also near the Bergen Museum of Arts & Sciences, Hackensack University Medical Center and various retail, dining and entertainment options.
Cruz said in prepared remarks the infill location and upside in the assets drove very strong interest from the investment community in the property. He added demand for multifamily housing is stronger than it was before the pandemic.
Kushner Cos. Deals
Kushner Cos. has acquired more than 40,000 multifamily units since 1980 and has a current portfolio of 17,000 units and nearly 10 million square feet of retail, office, industrial and hospitality assets. The firm is continuing to expand in the Northeast, South Florida and other parts of the United States.
Bloomberg reported last week the company sold two apartment communities in the Baltimore area for a total of $240 million as part of its plan to dispose of about half of its Maryland multifamily assets. Kushner Cos. also sold two apartment buildings in the region earlier this year for a total of $69.3 million, according to Bloomberg.
In October, Kushner Cos. acquired a 710-unit, three-property portfolio from Drucker + Falk in the Richmond-Tidewater market in Virginia for $113 million. The properties were located in Newport News, Va.; Mechanicsville, Va. and Henrico, Va.