Quail Ridge in Plainsboro — Courtesy: HFF
By Joshua Burd
A sprawling garden apartment community outside Princeton is on the market to investors seeking a property in a high-barrier-to-entry suburb, according to brokers with HFF.
Working on behalf of the current owner, HFF is marketing the 1,032-unit property known as Quail Ridge in Plainsboro. The sales team is pitching the complex as a “large, institutional-quality apartment community” in an affluent submarket, with value-add opportunity.
The property, which is 92.5 percent occupied, was built in 1981 and has seen extensive renovations since 2000, HFF said. The current owner has invested more than $2 million dollars over the last three years for upgrades such as an improved fitness center, an updated leasing center, an expanded playground and other features.
“The property is well positioned in the market to attract the primary tenant base comprised of young professionals and young families employed at the various high technology and Fortune
500 firms in the immediate area,” HFF wrote in an offering memorandum. “While apartment interiors are in excellent condition, there is opportunity to upgrade kitchens and bathrooms to enhance investment returns.”
Management has renovated 22 percent of the units at the 51.7-acre property in recent years, HFF said. Those improvements have focused on kitchens, bathrooms, flooring and lighting.
Continuing those upgrades could generate a 15 percent return on cost, HFF said.
In addition to touting the demographics and regional employment base in the Princeton area, HFF said Quail Ridge “is located in a strong apartment submarket that has a proven track record of high occupancy.” The firm noted that there are five other garden apartment complexes in the area, totaling 4,136 units, all built between 1973 and 1984.
Collective occupancy for those properties is about 96 percent.
The HFF marketing team is being led by Jose Cruz, Michael Oliver, Kevin O’Hearn, Andrew Scandalios, Mark Mahasky and Stephen Simonelli, with Greg Nalbandian overseeing the financing effort.
