PLAINFIELD, NJ – In its entree into Union County, Teaneck, NJ-based Treetop Development, LLC has acquired the 108-unit Netherwood Village collection of apartment properties here for $9.8 million.
Adam Mermelstein, a Treetop principal, also tells Globest.com that the company expects to close any day on the $39-million purchase of a 404-unit multifamily property on Branch Brook Drive in Belleville in Essex County, NJ. The company currently has a portfolio of approximately 3,000 multifamily units in Essex County.
Treetop acquired Netherwood Village, a HUD garden apartment complex, from Lawrence Garden LLC. Steven Fleissig of the law firm Greenberg Traurig represented Treetop Development in the transaction. The property at 825 East Front St. features one-, two-, and three-bedroom units.
“This property met all these criteria and was the perfect opportunity to establish a footprint in the Union County market,” Mermelstein says. “The property has been undermanaged for several years and after completing one of our trademark ‘turnaround’ programs, we will be able to reintroduce these apartments as an affordable option. As a result, the potential for the property is tremendous.”
Treetop plans to undertake some capital improvements at the property, including new landscaping, new roofs, painting, refinished hardwood floors, and new kitchens with new cabinets, tile floors, and appliances. The company also plans to renovate all bathrooms with ceramic tiles.
Mermelstein adds that the company is planning for further acquisitions in Union and Essex counties and is targeting $100 million in multifamily deals in 2013 in those two markets.
The purchase of Netherwood Village is a continuation of an acquisition program Treetop implemented several years ago that has added more than 3,000 units to its portfolio, including properties in Newark, East Orange and Jersey City.
In 2012, the company has spent approximately $75 million in acquisitions in Essex County thus far and about $150 million in new purchases companywide to date in expanding its New Jersey and New York portfolios.
“We’re looking for well-located, market-rate rental communities that can be purchased at competitive prices, immediately generate capital and possess future upside as well,” he says.