S.V.P. Joseph Keenan and S.V.P. Justin Lupo Achieve Record Price for 101 Units and 10,000 S.F. of Commercial Space
Woodbridge, N.J., July 14, 2021 – The Kislak Company, Inc. announced the recent sale of Merriam Gateway Apartments, a multifamily property with 101 units and 10,000 square feet of commercial space, at 69-75 Sparta Avenue in Newton, Sussex County, New Jersey, for $22,580,000.
Kislak marketed the property on an exclusive basis on behalf of the seller, Merriam Gateway Apartments, Inc., with senior vice president Joseph Keenan handling the assignment. Senior vice president Justin Lupo procured the purchaser, The Cobblers Loft, LLC, which is an affiliate of Blue Diamond Equities, LLC.
The sale of Merriam Gateway Apartments is the largest multifamily sale ever in Sussex County, New Jersey based on data available from CoStar.
The property is a historic four-story elevator building. It was a once a shoe factory that was converted into an apartment building. The residential unit mix includes eight studios, three studios with lofts, 75 one-bedroom apartments and 15 two-bedroom apartments. Amenities include on-site parking and laundry facilities.
Following closing, the property was renamed The Cobbler Lofts.
“The offering garnered a tremendous amount of interest from investors since it is rare that a 100+ unit property under an hour from New York City not subject to rent control becomes available,” said Mr. Keenan. “This was a true valued add opportunity as the rents are on average 25% below market in an ideal location. The property sits across from the world headquarters of and adjacent to the future campus of Thorlabs, which is adding approximately 4,000 new employees to the area. The purchaser was quick to capitalize on these benefits and in the midst of the pandemic, a deal was made.”
Mr. Lupo commented, “This sale is an excellent example of the strong investor demand for income producing properties in northwestern New Jersey. While cap rate compression continues across the state, the opportunity to acquire larger assets in more tertiary markets is becoming increasingly attractive.
The purchaser will benefit greatly from the changing rental landscape in Newton given the ThorLabs campus and the thousands of new jobs it is attracting.”
The property is conveniently located one mile from downtown Newton and all of its commercial and retail offerings. Newton is also the county seat of Sussex County, which is approximately 60 miles west of New York City.
At the time of closing, the property was 95%+ occupied. The seller’s attorney was Joanne Sarubbi of Bourne, Noll & Kenyon, and the purchaser’s attorney was Neil Fink of Fink & Zelmanovitz PC. The purchaser’s financing was arranged by Walker & Dunlop through Nate Hyman of Polaris Funding.
Mr. Keenan added, “As with most deals, there were several issues that had to be resolved prior to closing, which would not have occurred without the team effort and collaboration among all parties involved – the seller, purchaser, bankers, attorneys and brokers.
Mr. Keenan joined Kislak in 2006 and specializes in the sale of multifamily and other investment properties throughout northern New Jersey. He received the firm’s Rookie of the Year award in 2008 and was promoted to a senior vice president in 2019. Mr. Keenan’s investment sales total more than $250 million.
Mr. Lupo joined Kislak in 2014 and specializes in the sale of multifamily and other investment properties in central New Jersey and eastern Pennsylvania. He also received the firm’s Rookie of the Year award. Additionally, he received the firm’s Sima Kislak Jelin Salesperson of the Year award in 2020 and 2018 and Producer of the Year award in 2019. Mr. Lupo’s investment sales total more than $450 million.
About The Kislak Company, Inc.
The Kislak Company, Inc., which is headquartered in Woodbridge, New Jersey, is a leading commercial real estate brokerage firm 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 35 professionals provide comprehensive market coverage throughout New Jersey, New York, Pennsylvania, and Delaware.
Now in its 115th year, Kislak was among a select group of firms recognized as a 2020 Power Broker by CoStar Group, Inc. and this was the firm’s 15th consecutive recognition.