NJ Multifamily Portfolio Trades for $72M

NEWARK, NJ – OneWall Partners has sold a 641-unit multifamily portfolio, spanning Newark, NJ and Irvington, NJ, in a $72 million transaction.

Gebroe-Hammer Assoc.’s executive managing director, David Oropeza and EVP, David Jarvis exclusively represented the seller and procured the buyer, an unnamed private investment group. The firm’s SVP, Adam Zweibel additionally served on the brokerage team.

Progress Capital partner, Brad Domenico arranged the financing for the transaction.

Located in East Essex County, the portfolio’s Newark, NJ properties consist of 133 units at 343 Schley St., 50 units at 129 Chancellor Ave., 51 units at 585 Elizabeth Ave., 26 units at 595 Elizabeth Ave. and 55 units at 603 Elizabeth Ave. The portfolio additionally comprises 64 units at 356 Stuyvesant Ave. in Irvington, NJ and 262 units at 278-404 Stuyvesant Ave. in Irvington, NJ.

The mid-20^th century buildings each feature a mix of studio, one-, two- and three-bedroom apartments. Each asset has undergone capital improvements within the past four years.

“Considered Essex County’s leading urban-core corridor, the Newark-Irvington tract is one of the most dynamic, on-the-rise multifamily investment submarkets in the New York Metro,” says Oropeza. “The entire area is undergoing a dramatic transformation that is having positive effects on historically stabilized multifamily product of this portfolio’s caliber.”

The portfolio’s five Newark properties are situated within the city’s historic Weequahic area and are located within close proximity to the 311-acre Weequahic Park, which features jogging paths, a golf course and an 80-acre lake.

“This portion of the portfolio is at the heart of one of Newark’s most well-established districts where significant residential and commercial redevelopment, spurred by Downtown Newark revitalization initiatives, has taken hold,” states Jarvis. “Given these sweeping modern-day efforts – which also are being mirrored and replicated in nearby Irvington – the portfolio is extremely well-poised for immediate and long-term value-add repositioning in a submarket where nearly 85% of the housing stock hails from the mid-20th Century era.”

For two decades, the East Essex submarket has led the state in the rebuilding and rehabilitation of its existing housing stock.

“For more than a decade, East Essex has evolved from its urban industrial roots to become a popular residential, business and tourist destination,” says Oropeza. “Its submarkets are highly favored and sought-after by a millennial and professional tenant base that works locally or out-commutes to New York City.”

Oropeza adds, “This COVID economy also is drawing investment capital that at one time exclusively focused on New York City. While there was a healthy interest among private investors and investment groups from across the Hudson River, the pandemic has accelerated this trend thanks to the appeal of New Jersey’s suburban urban centers during the past 12 months or so.”