The Kislak Co. Inc. recently brokered the $7.4 million sale of four apartment buildings in East Orange — Courtesy: Kislak
By Joshua Burd
Seven apartment buildings with 140 units in East Orange have changed hands for a combined $11.75 million, in a set of transactions announced Friday by The Kislak Co. Inc.
In the largest of the three deals, the firm said Seaview Capital Partners LLC sold a 72-unit portfolio at 30 Beech St., 46 South Arlington Ave., 356 William St. and 6 Glenwood Ave. for $7.4 million. Kislak Sales Associate Julie Gralla represented the seller, while Vice President Robert Squires represented the private investor who purchased the portfolio.
“Prices continue to skyrocket to well over $100,000 per unit in East Orange,” Gralla said. The city is extremely desirable to tenants and investors with two midtown direct trains providing service to and from Manhattan in 20 minutes.”
Gralla also represented both parties in the $2.45 million sale of two other buildings in the city, 139 Halsted St. and 116-118 South Grove St., which include a combined 47 units. Kislak identified the sellers as TBG Halsted LLC and TBG South Grove St. LLC, while the purchaser was a private investor.
The third transaction comprised 21 units at 67 Lenox Ave., which an investor acquired for $1.9 million, Kislak said. Gralla represented the buyer, while Kislak Senior Vice President Joni Sweetwood represented the seller, 67 Lenox LLC.
“The East Orange and surrounding multifamily markets remain extremely attractive to investors given their north Jersey locations that are a short commute to New York City,” said Robert Holland, president of the Woodbridge-based brokerage firm. “Occupancies are extremely strong and rents are increasing, which add to investor demand. Julie and our team did an excellent job executing these sales.”
In the 72-unit portfolio, Gralla said the sellers turned over many units after purchasing the portfolio and that two of the four buildings were gut-renovated within the last 10 years. Each building is within walking distance of two train stations and offers quick access to Interstate 280 and the Garden State Parkway.
“As a result, even throughout the transaction, the portfolio’s net operating income continued to increase dramatically as rents continue to rise,” she said. “This is a testimony to great management but also to East Orange’s strong rental market.”
The properties at Halsted and South Grove Streets, located just about a mile from one another, contain a mix of one- and two-bedroom units and on-site parking at both locations.
“What made this deal so valuable was the extreme upside potential due to higher expenses which needed to be properly managed, as well as below market rents,” Gralla said.