S.V.Ps. Joseph Keenan & Justin Lupo Arrange Exclusive Sale of 115 Units
Woodbridge, N.J., September 29, 2022 – The Kislak Company, Inc. announced the recent sale of a three-property multifamily portfolio in Newton, Sussex County, New Jersey for $22,450,000. The portfolio includes Swartswood Gardens with 32 units at 4-20 Swartswood Road, Stonewood Apartments with 32 units at 31 Paterson Avenue and Mill Street Manor with 51 units at 4 Mill Street and 10-16 Hillside Terrace.
Kislak marketed the properties on an exclusive basis on behalf of the sellers Red Knight Properties Newton 2A, LLC; Red Knight Properties Newton 2, LLC; and Red Knight Properties Newton MS-HS, LLC with senior vice presidents Joseph Keenan and Justin Lupo handling the assignment. They also procured the purchaser, a longtime Kislak client that was not disclosed, who completed an I.R.C. Section 1031 Exchange with the purchase.
The record sale price represents the highest price ever achieved for multifamily properties in Sussex County, New Jersey according to data available from CoStar.
Messrs. Keenan and Lupo previously arranged the sale of Swartswood Gardens and Stonewood Apartments to the sellers in 2020 and Mr. Keenan arranged the earlier sale of the same properties in 2016.
“What made this transaction so appealing to the purchaser was the nearly $16 million in assumable financing,” noted Mr. Keenan. “The seller had put the debt on the property about 1.5 years ago at a rate that is much lower than what the purchaser could have obtained today. As a result, we were able to obtain record setting pricing in a rising interest rate market.”
There is tremendous upside in the property as much of the rents are well below market. The Newton – Sussex County market has experienced rapid growth over the past several years and is seeing an influx of new renters interested in newly renovated apartments.
“In an extremely volatile interest rate environment, the assumable in-place debt provided tremendous value to both the seller and purchaser,” added Mr. Lupo. “It allowed the seller to achieve ultra-competitive pricing while avoiding prepayment penalties on the loan. The purchaser was also able to hit an attractive yield level to put their 1031 exchange money to work.”
All of the properties are garden apartment complexes with well-maintained brick buildings in professionally landscaped parklike settings. Swartswood Gardens includes 24 one-bedroom units and eight two-bedroom units. Stonewood Apartments includes four studios, 16 one-bedroom units and 12 two-bedroom units. Mill Street Manor includes 21 one-bedroom units, 23 two-bedroom units and seven three-bedroom units.
The properties include many recent improvements and offer abundant on-site parking. They are conveniently located one mile from downtown Newton, which is the Sussex County seat situated 60 miles northwest of New York City, close to Route 206 with many major retailers including ShopRite, Walgreens, Home Depot and Lowes. Sussex County Community College is also nearby.
At the time of closing, the properties were fully occupied.
Joseph 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 $300 million.
Justin Lupo joined Kislak in 2014 and specializes in the sale of multifamily and other investment properties in central New Jersey and eastern Pennsylvania. Following his first year with the firm, he received its Rookie of the Year award. In 2018 and 2020, he received the firm’s Sima Kislak Jelin Salesperson of the Year award and in 2019 received the firm’s Producer of the Year award. Mr. Lupo’s investment sales total more than $550 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 thirty-five professionals provide comprehensive market coverage throughout New Jersey, New York, Pennsylvania, and Delaware.
Now in its 116th year, Kislak was among a select group of firms recognized as a 2021 Power Broker by CoStar Group, Inc. and this was the firm’s 16th consecutive recognition.