California Firm Continues Growth with Morristown Multifamily Buy
The purchase of 217-unit building marks Pacific Urban’s third multifamily purchase in the Northeast since the firm established a regional office in New York late last year.
MORRISTOWN, NJ—Palo Alto, CA-based Pacific Urban Residential, LLC has acquired the Highlands at Morristown Station multifamily property here.
Commercial brokerage firm Cushman & Wakefield reports that the purchase of 217-unit building on Lafayette Avenue and Morris Street marks Pacific Urban‘s third multifamily purchase in the Northeast since the firm established a regional office in New York late last year.
No financial details of the transaction were disclosed.
The Highlands at Morristown Station sits adjacent to NJ Transit’s Morristown Station and is surrounded by retail, restaurants, nightlife, office buildings and hotels. Constructed in 2010, the six-story building at 10 Lafayette Ave. features a full suite of lifestyle amenities, structured parking and 7,500 square feet of ground-level retail.
“This offering represented an opportunity for repositioning of a class A apartment community in one of New Jersey’s most desirable 24/7 markets,” says Cushman & Wakefield’s Brian Whitmer, who represented the seller and procured the buyer with Andrew Merin, David Bernhaut, Gary Gabriel, Adam Spies, Kevin Donner, Kyle Schmidt, Ryan Dowd and Mark Phillips. “The submarket’s affluent demographics and this property’s superior location supports higher-end unit refinishing and modernized amenities,” Whitmer notes.
“Morristown, considered a new mecca for millennials and empty-nesters in search of convenience and experience in a walkable environment, is poised for a bright future with continued expansion to service the demands of a growing resident base,” Merin says. “Its CBD is poised for a rapid commercial expansion as well.”
A major component of a thriving multifamily market is growth in the commercial office sector. Morristown’s office development projects total more than 700,000 square feet, according to Cushman & Wakefield. The largest—380,000 square feet—is located next door to the Highlands. “This additional office inventory is anticipated to expand the daytime population by approximately 3,500 people,” Merin adds.
In July, Pacific Urban Residential reported that its recently established New York office acquired two apartment communities and was under contract to acquire a third. Upon closing of the third investment, PUR’s four-month investment activity will total $275 million. Moreover, the firm stated that it was actively seeking additional apartment investments in the New York, Northern New Jersey and Fairfield County, CT metro areas.
The firm was co-founded by industry veterans George Marcus and Al Pace. Since founding in 1998, the firm has acquired more than 25,000 apartment homes for its’ own account and on behalf of a few, highly valued strategic partners.