Vantage Buys AIG MF Portfolio for $242M

PLAINSBORO, NJ-Vantage Properties, LLC and Angelo, Gordon & Co. have acquired AIG’s central New Jersey multifamily portfolio consisting of six multifamily rental properties totaling 2,200 units in New Jersey for $241.5 million. Vantage then sold three of the properties to Lighthouse Properties. HFF brokered this deal. 

The properties are: Quail Ridge, with 1,032 units in Plainsboro; Pheasant Hollow, with 440 units in Plainsboro; Jumping Brook, with 308 units in Neptune; Longbrook, with 240 units in Matawan; Leonardine Gardens, with 140 units in South River; and Marine Gardens with 24 units in Long Branch. At the same time, Vantage launched a new subsidiary, Candlebrook, focused on suburban rental properties.

“Our acquisition of the AIG portfolio and the launch of our Candlebrook subsidiary significantly diversify our existing real estate development business into suburban markets,” says Neil Rubler, president and CEO of Vantage Properties, in a statement. “We look forward to leveraging our successful urban model and prior experience with our Fox Run apartments in the New Jersey market to provide high-quality housing to suburban residents," Rubler says, though he could not be reached for additional comment to GlobeSt.com in time for deadline.

Through division Vantage Mid-Atlantic, Vantage Properties acquired Fox Run Apartments, a 776-unit garden apartment complex in Plainsboro, NJ, in 2009. Angelo Gordon again was the equity partner. The companies sold the complex to AvalonBay Communities in December 2010. Vantage owns and operates nearly 10,000 apartments in approximately 150 buildings in New York City.

“In today’s competitive environment, we were excited to find such an attractive, sizeable portfolio of multifamily assets at a favorable basis,” says Dana Roffman, managing director of Angelo, Gordon & Co. “Angelo, Gordon’s philosophy has always been to invest in markets with high barriers to entry and these properties are in such areas, leaving little room for new development.”

AIG had acquired the complex from the Kushner Cos. in 2007, but has been divesting assets since its 2008 bailout from the Federal government. Late last month, AIG sold Skyline Heights, a 256-unit community in Daly City, CA, for $45 million.

“The greater Philadelphia area suburban markets and the surrounding mid-Atlantic states offer fantastic value and opportunity,” says Devin Aronstam, director and head of acquisitions for Candlebrook. “This is an important new chapter for central New Jersey, as many of the current multifamily properties are older and in need of improvements. We expect the residents of these premier multifamily rental properties to experience a higher quality of life as part of the Candlebrook family of properties.”