Woodbridge, N.J. – The Kislak Company, Inc. announced the recent portfolio sale in East Orange, Essex County, New Jersey of four properties with 200 residential units, all within close proximity to one another, for $19,350,000. The portfolio includes 82 units at 106 North Grove Street, 73 units at 25 North Harrison Street, 28 units at 100 Chestnut Street and 17 units at 492 Park Avenue.
Kislak marketed the properties on an exclusive basis. Senior vice president Scott Davidovic represented the seller and senior vice president Robert Squires represented the purchaser.
The buildings are all in prime locations within walking distance to either the East Orange or Brick Church train stations – affording commuters approximately a 20-minute ride into Manhattan – and are centrally located near the Garden State Parkway and I-280.
Mr. Davidovic commented on the desirability of these buildings: “East Orange has become a more attractive and affordable city for people to live in given its close proximity to New York City and major transportation hubs. For investors, rents continue to rise and since we are still in a low interest rate environment, landlords are able to sell at low cap rates. This transaction is a prime example.”
While the transaction was challenging due to the large amount of vacancies in one building, Mr. Squires addressed how Kislak met the challenge: “When we bring a large portfolio like this to market, there is huge interest from purchasers looking to expand their own portfolios. There is a high demand for multifamily portfolios of this size especially in transit-oriented cities like East Orange. After we obtained the exclusive listing agreement to sell the properties, we quickly identified an out-of-state buyer, and worked the transaction through to closing.”
The vacant building at 106 North Grove Street contains all studio apartments, while the next largest building at 25 North Harrison Street has mostly one bedroom and studio apartments. The building at 100 Chestnut Street has an almost even mix of one and two bedroom apartments with one three bedroom unit; the building at 495 Park Avenue contains all one bedroom apartments.
The purchaser plans to renovate and lease the vacant units with Arbor providing the lending capital for the purchase.
Kislak has had an extraordinary few months selling multifamily properties in East Orange. Since mid-2017 alone, the firm closed 21 transactions with nearly 700 units for $75 million.
Mr. Davidovic joined Kislak in 2006 and specializes in the sale of multifamily properties with a focus on land and development throughout northern New Jersey. After his first year with Kislak, he received the firm’s prestigious Rookie of the Year award and he is also a past recipient of the firm’s Sima Kislak Jelin Salesperson of the Year award.
Robert Squires joined Kislak in 2003 and specializes in the sale of multifamily and other investment properties throughout New Jersey. Consistently among the firm’s leading producers, he received Kislak’s 2017 and 2016 Sima Kislak Jelin Salesperson of the Year award and its 2017 Producer of the Year award. Also in 2017, Squires earned the historic distinction of becoming Kislak’s all-time leading salesperson in any calendar year in the firm’s 112-year history.
About The Kislak Company, Inc.
The Kislak Company, Inc., which is headquartered in Woodbridge, New Jersey, is a leading commercial real estate brokerage consistently recognized for its investment sales success. Established in 1906, Kislak’s market leadership position and longevity are due to its ability to offer clients a personalized, hands-on approach, coupled with the unrivaled expertise of its long-tenured team of professionals. Kislak’s prestigious client base includes individual investors and owners, partnerships, financial institutions, and REITs. The firm’s 30 professionals provide comprehensive market coverage throughout New Jersey, New York, Pennsylvania and Delaware.
Now in its 112th year, Kislak was among a select group of firms recognized as a 2016 Power Broker by CoStar Group, Inc. and this was the firm’s eleventh consecutive recognition.