Apartment Complex Trades for $58M

With the deal, the complex will get its third owner—and third name—in the five-plus years of its existence. It was developed as Jefferson at Aberdeen Station in 2000/2001 by the Irving, TX-based JPI. It was then sold to the BlackRock-managed fund in 2002 and subsequently renamed Versailles at Aberdeen Station. The new owner, a private discretionary investment vehicle in which the Arlington, VA-based AvalonBay Communities has a 15% equity interest, is now calling the property Avalon at Aberdeen Station.

"It is one of only a few luxury rental apartment properties in Central New Jersey," says Jose Cruz, senior director of Cushman & Wakefield's Metropolitan Area Capital Markets Group, East Rutherford, NJ, who orchestrated the deal with C&W colleagues Andrew Merin, David Bernhaut and Gary Gabriel. "Its offering drew a great deal of interest from the investment community. The aggressive bidding speaks to continued strong demand for quality multifamily product."

"Current occupancy levels provide the opportunity for long-term net operating income growth through leasing the remaining vacant units, rent increases and expense reduction," Merin adds. "And given the strong demand and limited supply of luxury condominium communities in the surrounding area, it is primed for conversion."

The property's 290 units are spread out over six, four-story buildings. On-site are a 5,600-sf clubhouse, a business and conference center, a movie theater/media room and other amenities.