555 Northfield Ave. in West Orange — Courtesy: Invel Capital
(Editor’s note: This story was updated Tuesday, Dec. 9, with additional information from JLL.)
By Joshua Burd
A joint venture led by Invel Capital has acquired a 70-unit luxury apartment building in West Orange for nearly $41 million, in a transaction arranged and financed by JLL.
The Summit-based buyer, which partnered with Chicago-based Pearlmark Real Estate, noted that the property at 555 Northfield Ave. is just two years old and across the street from the 1,550-space Essex County Park N Ride. It also has two commercial units, including a 17,000-square-foot school facility, providing what brokers have previously described as additional streams of durable, long-term revenue for the asset.
JLL’s Michael Oliver, Steve Simonelli, Jose Cruz, Ryan Robertson, Elizabeth DeVesty and Austin Pierce represented the seller, a joint venture of Varma Real Estate and Garas Development, in the $40.8 million trade. The firm’s Michael Klein, Gerard Quinn and Christian Badalamenti sourced acquisition financing.
“We were drawn to this opportunity by a combination of factors that afford the property a unique, durable competitive advantage in a rapidly shifting marketplace,” said Ryan Goldstein, managing principal of Invel Capital. “We look forward to fostering an improved resident experience through community events, enhanced amenity and service programming, portfolio efficiencies and the hands-on, resident-centric approach of our affiliate property management firm.”
The new owners have tapped Vinyl Real Estate Management to oversee the property, which has resident amenities such as covered parking with electric vehicle charging stations, a high-end fitness center, a yoga room, three rooftop terraces, two resident lounges and a dog run. Residents have direct bus service to Midtown Manhattan via the Park N Ride, while they’re also minutes from the Turtleback Zoo, the 2,110-acre South Mountain Reservation and a host of dining, shopping, entertainment and employment opportunities.
“The West represented an exceptional opportunity to acquire a recently delivered asset in one of New Jersey’s most supply-constrained submarkets with significant income upside through mark-to-market rent adjustments and implementation of additional revenue streams,” Oliver said.
JLL, meantime, noted that resident within a one-mile radius have a $247,000 average household income and that 83 percent are white collar employees. The supply of Class A rentals is limited due to land scarcity and strict zoning regulations limiting new development opportunities, meaning the market is expected to remain highly competitive and supply constrained for the foreseeable future.
“The deal profile and location aligned perfectly with the borrower’s proven track record and existing portfolio holdings,” Quinn said. “The lender recognized this opportunity and was able to efficiently execute an attractive financing solution for Invel & Pearlmark in today’s competitive lending environment.”
