49 Prospect Ave. in East Orange — Courtesy: Marcus & Millichap
(Editor’s note: This story was updated on Tuesday, Jan. 12, with additional information from Progress Capital, which arranged an $81 million acquisition loan for the buyer.)
By Joshua Burd
A joint venture has reaped more than $90 million from the sale of 702 apartments across two dozen buildings in Essex County, according to brokers with Marcus & Millichap.
In a news release Thursday, the firm said it represented a partnership of ERCT Capital Group, MAVeCap and Metropolitan America in the transaction, which comprised two multifamily portfolios in East Orange and Irvington. The buyer, Spaxel LLC, paid $92.5 million.
“This was a special deal for us since we worked with the seller to assemble the entire 702-unit portfolio over the past two and a half years,” said Marcus & Millichap’s Richard Gatto, who is based in the firm’s Saddle Brook office. “It was rewarding to help our client generate a significant return, even more so because we were able to execute in the middle of a pandemic.”
Gatto represented the sellers alongside Fahri Ozturk, the news release said. Eric Anton and Chris Warner in the firm’s Manhattan office represented Spaxel, a New York-based multifamily developer and operator led by Managing Partner Granit Gjonbalaj.
Touting the deal as one of New Jersey’s largest multifamily sales of 2020, Marcus said the properties include a 390-unit collection in East Orange and another 312 apartments in Irvington.
“This portfolio offered an opportunity to invest in an urban area with strong metrics, coupled with low vacancy and substantial upside,” Ozturk said. “We received significant interest with 12 qualified offers within short period of time and sent out multiple contracts, showing strong interest from the market.”
Anton added: “All parties involved had reasons to close in 2020 and through the hard work of seller and buyer, we completed this sale at the buzzer on New Year’s Eve.”
Brian Hosey and John Krueger are Marcus & Millichap’s brokers of record in New Jersey and New York, respectively.
In a separate news release, Progress Capital announced that Partner Brad Domenico arranged an $81 million acquisition loan for the buyer. Arbor provided the financing.
“All parties involved knew that a year-end close was critical and worked very hard to make it happen for their respective clients,” Domenico said. “It was truly a collaborative effort.”