By Joshua Burd
A real estate investment trust is selling seven apartments properties in New Jersey and New York for $266.5 million, as the portfolio’s buyer continues to grow its suburban multifamily holdings.
The seller, First Real Estate Investment Trust of New Jersey, announced that it has agreed to sell the 1,058-unit portfolio to an affiliate of Kushner Cos., in a deal that is tied to a voluntary liquidation. The portfolio includes:
- Berdan Court in Wayne (176 units)
- Steuben Arms in River Edge (100 units)
- Westwood Hills in Westwood Hills (210 units)
- Pierre Towers in Hackensack (266 units)
- Boulders in Rockaway (129 units)
- Station Place in Red Bank (45 units)
- Regency Club in Middletown, New York (132 units)
Hackensack-based FREIT, which is led by members of the Hekemian family, said the deal is slated to close in the second quarter and is subject to certain conditions. Kushner must assume the mortgage loans on the Pierre Towers and Berdan Court properties, the seller said, noting that either asset may be removed from the transaction if the buyer does not reach agreements with lenders by Feb. 28.
The closing of the sale is subject to the approval of the Hackensack-based REIT’s shareholders. Concurrent with its approval of the sale agreement, the board also approved a plan of voluntary liquidation of the company and its remaining assets.
“FREIT has nearly six decades of distinguished history,” said Robert S. Hekemian Jr., FREIT’s chief executive. “We look forward to punctuating it by returning capital to shareholders in a favorable real estate environment.”
HFF Securities LP, a JLL company, acted as financial adviser and Paul, Weiss, Rifkind, Wharton & Garrison LLP served as legal adviser to a special committee formed by the REIT, in each case for both the apartment portfolio sale and plan of voluntary liquidation.
