SilverLake Apartments at 155 and 165 Belmont Ave. in Belleville — Courtesy: JLL
By Joshua Burd
Klein Enterprises has sold a 232-unit luxury apartment property in Belleville, the Maryland-based developer’s first project in New Jersey, in an $80 million deal arranged by JLL.
According to the brokerage team, which arranged the sale and acquisition financing, Sym Investments purchased what’s known as SilverLake Apartments at 155 and 165 Belmont Ave. The deal comes nearly four years after Klein delivered the two-building complex as part of its expansion to the state, capitalizing on a location alongside a Newark Light Rail station and an Essex County submarket with strong demographics for renters.
JLL senior managing directors Mike Oliver, Steve Simonelli and Jose Cruz and directors Elizabeth DeVesty and Austin Pierce represented the seller, which is based in Pikesville, Maryland. Senior managing directors Michael Klein and Thomas E. Didio Jr., Senior Director Gerard Quinn and Senior Analyst Joseph Gruber arranged the $56 million financing through Freddie Mac, noting that JLL Real Estate Capital LLC will service the five-year, fixed-rate loan.
“SilverLake represents a premier Class A apartment community in one of New Jersey’s most well-connected suburban markets,” Oliver said. “The property’s strong occupancy, favorable (payment in lieu of taxes) structure and proximity to major employment centers make it an exceptional investment opportunity.”
In a news release, JLL noted that the neighboring Silver Lake light rail station provides a 15-minute ride to Newark Penn Station and an overall 40-minute commute to New York Penn Station. Residents also have easy access to major highways, including Route 21, Interstate 280 and the Garden State Parkway.
The firm added that 56 percent of households in Essex County are renters, while the county’s average household income is $129,524. The immediate submarket in Upper Essex County has consistently high occupancy rates, currently averaging more than 95.7 percent.
SilverLake, which is currently 94 percent leased, comprises two five-story buildings with a mix of studio, one-bedroom and two-bedroom apartments and amenities such as a lounge, an outdoor courtyard, a fitness center and a business center. Built by March Associates Construction, the property also includes 17,024 square feet of commercial space that is fully leased, with a regional tenant occupying 71 percent of the space under a secure lease through 2035.
“The opportunity saw strong competition from a range of debt capital sources, including banks, agencies, life insurance companies and alternative lenders,” Quinn said. “This is further evidence of lenders’ strong appetite to lend on well-located, high-quality multifamily assets.”
Leon Mayer, founder of Sym Investments, added: “We are pleased to add another recently developed multifamily asset to our northern New Jersey portfolio. This acquisition allows us to capitalize on the region’s continued growth with an institutional-quality property.”
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