A recently sold, 200-unit apartment portfolio in East Orange — Courtesy: The Kislak Co. Inc.
By Joshua Burd
An out-of-state buyer has paid nearly $19.4 million to acquire a four-building, 200-unit apartment portfolio in East Orange, as part of a sale brokered by The Kislak Co. Inc.
The buildings, which are in close proximity, include:
- 82 units at 106 North Grove St.
- 73 units at 25 North Harrison St.
- 28 units at 100 Chestnut St.
- 17 units at 492 Park Ave.
Kislak announced the $19.35 million sale after marketing the properties. Senior Vice President Scott Davidovic represented the seller, while Senior Vice President Robert Squires represented the buyer. They touted the buildings’ location near the East Orange and Brick Church train stations, which offer commuters a roughly 20-minute ride into Manhattan, along with the Garden State Parkway and Interstate 280.
“East Orange has become a more attractive and affordable city for people to live in given its close proximity to New York City and major transportation hubs,” Davidovic said. “For investors, rents continue to rise and since we are still in a low interest rate environment, landlords are able to sell at low cap rates. This transaction is a prime example.”
The portfolio includes one vacant building, at 106 North Grove St., which contains all studio apartments, the firm said. The other three buildings include a mix of studios, one-bedrooms and two-bedroom apartments.
Kislak said the transaction was challenging due to the vacancies in the North Grove Street building, but was able to locate a buyer. The new owner plans to renovate and lease the vacant units, with Arbor Realty Trust providing the lending capital for the purchase.
“When we bring a large portfolio like this to market, there is huge interest from purchasers looking to expand their own portfolios,” Squires said. “There is a high demand for multifamily portfolios of this size especially in transit-oriented cities like East Orange.
“After we obtained the exclusive listing agreement to sell the properties, we quickly identified an out-of-state buyer, and worked the transaction through to closing.”