HOLMDEL, NJ-An affiliate of Real Estate Equities Group LLC has acquired two multifamily properties totaling 120 units here from the developer of both complexes, the Woodbridge-based Continental Properties. The deal was orchestrated by Cushman & Wakefield's Metropolitan Area Capital Markets Group. The combined sale price of about $8 million factors out to $67,000 per unit, a solid number considering both properties are age- and/or income-restricted.
"We feel this acquisition will be a great addition to our multifamily portfolio, which now consists of more than 1,200 units," says Adam J. Kent, director of finance and acquisitions for the Englewood-based Real Estate Equities Group. "It meets our current acquisition parameters and our aim of upgrading our portfolio to newer, higher quality assets. The acquisition is being funded through sale proceeds from a 1031 exchange on a property that our firm has owned for more than 20 years."
Both properties are currently 100% leased with wait lists. Holmdel Village is a 70-unit, income-restricted senior apartment community on seven acres. Laurel Village is a 50-unit, income-restricted apartment community on three acres.
"Both assets provide dependable income and have limited capital requirements because they are relatively new construction," says C&W's Andrew Merin, who headed the assignment with colleagues David Bernhaut, Gary Gabriel and Jose Cruz.
"Besides the properties' prime locations, appearances and nearby amenities, their success can be attributed to a general undersupply of income-restricted - and in the case of Holmdel Village, age-restricted housing options in the region," Cruz says.
"In general, the area has enjoyed both economic and population growth supported by a high quality of life. This purchase is an all-around sound investment for Real Estate Equities Group."
The location is in Monmouth County, near Jersey Shore beaches, the PNC Bank Arts Center, several major highways including the Garden State Parkway and two New Jersey Transit rail stations.
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