Robert Towers at 60 South Munn Ave. in East Orange — Courtesy: Marcus & Millichap
By Joshua Burd
Investors have acquired a 206-unit apartment high-rise in East Orange for $22 million, in a deal announced Thursday by Marcus & Millichap.
The firm touted the transaction after representing Metropolitan America in its sale of Robert Towers, an 11-story building at 60 South Munn Ave. The brokerage also arranged $19.8 million in acquisition financing for the buyer, EOA 206 LP.
“Leveraging our platform and process, we generated interest from over 100 investors from 15 offices across the country, created a competitive buying environment and generated 17 offers in 30 days, including five from out-of-market buyers,” said Fahri Ozturk, vice president of investments in Marcus & Millichap’s New Jersey office.
Ozturk and Richard Gatto, who is also based in Marcus & Millichap’s New Jersey office in Saddle Brook, marketed the property and procured the buyer.
“East Orange is going through a tremendous revitalization centered around its two NJ Transit train stations, East Orange Station and Brick Church Station, which provide commuters with direct access to Midtown Manhattan via a 25-minute train ride,” Gatto said. “East Orange offers investors the opportunity to invest in an urban market with strong metrics such as high demand, low vacancy, and strong cash flows with significant upside.”
Built in 1950, Robert Towers is located near both train stations, along with Interstate 280 and the Garden State Parkway. The property is 10 minutes from Newark Liberty International Airport.
Eric Seidel, senior director with Marcus & Millichap Capital Corp., arranged the 36-month, interest-only financing.
“Our clients requested high-leverage financing and additional proceeds for capital improvements,” Seidel said, “and having the property listed with our New Jersey office provided excellent transparency with the seller.
“There was a great deal of interest in the opportunity from lenders and ultimately a capital source was chosen that truly believed in our clients’ business plan and strategy to capitalize on the East Orange market.”
Cliff Corrall, CEO and president of Metropolitan America, offered praise to the Marcus & Millichap team of Gatto, Ozturk and Seidel.
“Their comprehensive marketing plan quickly produced significant interest in the asset and their ability to arrange financing for the eventual buyer was key to closing in a timely and efficient manner,” Corrall said. “The professionalism and execution they exhibited during this process should be used as a model for how deals get done in this market going forward.”
