Kislak Completes $136M Multifamily Property Sale–Largest in New Jersey Since ‘11
- Jul 25, 2014
Montville, N..J.—The Kislak Co. Inc. announced the $136 million sale of Rachel Gardens, a 764-unit apartment community on more than 98 acres in the Pine Brook section of Montville, N..J. Vice President Jeffrey Squires represented both parties in the transaction. President Robert Holland and Chief Operating Officer Jason Pucci provided transaction management and support.
The sale of Rachel Gardens is the single largest sale of a multifamily property in New Jersey in terms of price since 2011, based on data available from CoStar. It is also among the largest multifamily properties in New Jersey.
The purchaser is an affiliate of New York-based Cammeby’s International whose other holdings include the Woolworth Building in Manhattan and a substantial portfolio of commercial and residential real estate.
“We are pleased to purchase Rachel Gardens. It is a unique property in northern New Jersey and opportunities like this don’t come along very often,” says a spokesman for Cammeby’s.
Kislak was court-appointed as the exclusive broker to sell the property with a $135 million listing price and marketed it over a limited four-week period in April and May. Given the rare opportunity to acquire a large well-performing multifamily property with value-added upside in northern New Jersey, there was extremely strong interest from many well-qualified local, regional and national investors, several with international participants.
Following Kislak’s recommendation, the $136 million sale of Rachel Gardens to Cammeby’s was approved by the sellers. Cammeby’s offer was $1 million above the listing price with a considerable non-contingent deposit and no due diligence. Three other interested parties made offers at $135 million.
“Given the limited period during which we marketed the property, Jeff and our team generated an extraordinary level of interest and ultimately produced the highest and best price, which was $1 million above the listing price,” says Holland. “I am immensely proud of our team and its accomplishments. Time and again, we produce astonishing results of record cap rates and prices for our clients strengthening our reputation as the most successful broker of multifamily and other investment properties in and around New Jersey.”
“There are only a handful of apartment complexes of the size and quality of Rachel Gardens in northern New Jersey and they rarely, if ever, sell,” says Squires. “Our exclusive listing represented an extraordinary and unique opportunity for investors to acquire a large well-performing property in an affluent community only 30 minutes from Manhattan. Occupancy at Rachel Gardens is consistently high with waiting lists for some units. These factors contributed to a frenzy of interest from many investors, several at a sub-5 percent cap rate.”
Constructed between 1989 and 1999, Rachel Gardens consists of 531 two bedroom apartments, 226 one-bedroom apartments and seven studio apartments in 32 three-story buildings. Five hundred ninety six of the units are market rate and 168 of the units are affordable. It is the only apartment property in Montville.
Montville was ranked 13th in the nation in Money magazine’s 2013 Best Places to Live rankings, the second-highest in New Jersey of the top 50 nationwide. In 2012, Morris County was ranked the 10th wealthiest county in the nation by the American Community Survey.
NorthMarq Capital supplies $10.6M refinance for Chicago redevelopment
Chicago—Sue Blumberg, senior vice president/managing director of NorthMarq Capital’s Chicago office, and Charles Cotsalas, senior vice president/senior director of NorthMarq Capital’s New York metro office, arranged the $10.6 million refinance of Vesta Lofts, a 59-unit multifamily property located in Chicago.
The transaction was structured with a seven-year term and 30-year amortization schedule and was arranged for the borrower by NorthMarq through its seller/servicer relationship with Freddie Mac.
“Vesta Lofts represents a true vintage redevelopment of a former battery factory that has preserved many historic elements, such as the original water tower on the roof,” says Blumberg. “The units themselves are loft style with great space and finishes. The borrower was able to take advantage of these historically low interest rates to place the permanent loan.”