Maple Valley Apartments, located at 744 Valley St. in Maplewood — Courtesy: The Kislak Co. Inc.
By Joshua Burd
Three Essex County buildings with a combined 178 apartments have changed hands for a total of $11.6 million, following recent sales arranged by The Kislak Co. Inc.
The brokerage said last week that it represented both parties in each transaction, including a two-building, 106-unit portfolio at 64 and 70-94 Union Ave. in Irvington. The unnamed purchaser paid $6.5 million for the brick buildings, which offer access to public transportation, the Garden State Parkway and Interstate 78.
The other investment sale involved a building at 10101-1016 Clinton Ave. in Irvington, which has 12 apartments and four retail spaces totaling 3,000 square feet. Kislak said the property sold for $1.1 million.
Kislak Vice President Scott Davidovic represented the seller in the Union Avenue sale, while Senior Vice President Joni Sweetwood represented the buyer. Davidovic also represented the seller and purchaser in the Clinton Avenue sale.
“Essex County has proven to be a very stable rental market in New Jersey with consistent rent growth,” Davidovic said. “Investor demand remains very strong and despite a modest uptick in interest rates, attractive financing is still available, which allows property owners to sell at low cap rates.”
All transactions followed the owners’ engagement of Kislak on an exclusive basis.
The property at 1010-1016 Clinton Ave. was recently gut renovated and sits along a main street in Irvington with abundant foot traffic and easy access to the Parkway, Kislak said.
“This sale presented an unusual opportunity for a buyer to acquire a large number of units in one location in Irvington,” Sweetwood said. “The buyer understood the potential for adding value by improving the management of the properties. He assumed management prior to the sale, resolved several operational problems and raised rents.
“These properties are well-located near the Irvington bus station and adjacent to large medical office buildings that have recently been renovated. The area is bustling.”
The firm announced the deals while also touting the completion of a long-term ground lease of Maple Valley Apartments, a 60-unit apartment complex at 744 Valley St. in Maplewood. The ground lease includes an upfront payment of $4 million with annual ground rent.
Davidovic represented the lessor, while Sales Associate Andrew Scheinerman represented the lessee.
“The long term ground lease will allow the lessee ample time to implement a value add strategy,” Scheinerman said. “This will include upgrading units and reconfiguring layouts to maximize rents. This is our third transaction with the lessor and 15th transaction with the lessee. Both parties have confidence in Kislak’s ability to see our deals through to closing, which will allow for more deals in the future.”
