Thousand Oaks Village in Atlantic Highlands — Courtesy: KRE Group
By Joshua Burd
Kushner Real Estate Group and Verde Capital are set to reposition a 304-unit apartment complex in Monmouth County after acquiring the property last month for $56 million, the partnership’s second recent multifamily acquisition.
Brokers with Gebroe-Hammer Associates announced in late July that the joint venture had acquired the 1980s-era, garden-style community in Atlantic Highlands, known as Thousand Oaks Village. In a separate announcement, KRE and Verde said they would rebrand and upgrade the complex through unit renovations and improved amenities.
“Thousand Oaks Village offers an exceptional value proposition,” said Jonathan Kushner, president of KRE Group. “Not only is the location highly desirable, but the availability of new rental apartments in the area is limited.”
Gebroe-Hammer President Ken Uranowitz and Executive Managing Director Joseph Brecher represented the seller of the complex, which is just off Route 36 at 165 Thousand Oaks Drive, and procured the buyers.
“The seller recognized the market conditions were right to sell Thousand Oaks Village, a highly visible, well-maintained Class B multifamily asset in close proximity to regional employment hubs and upscale residential/commercial/retail centers,” Uranowitz said.
For KRE Group, it is the latest among several suburban multifamily acquisitions in the state over the last three years. The firm has invested $350 million in that time and acquired more than 1,800 rental units as part of a plan to add rental properties with value-add potential.
That includes a prior joint venture with Verde Capital, in which the firms purchased the 288-unit Deer Creek community in Plainsboro for $45 million.
“KRE’s market presence enhances their ability to identify niche opportunities and utilize their demonstrated experience by delivering a superior product in their target market,” said Jacob Reiter, president of Verde Capital. “Verde values our strong relationship with KRE, and is confident in their ability to provide solid returns on this exceptional investment.”
In Atlantic Highlands, the firms will rename the complex Atlantic Pointe. The 36-acre property, located in the residential neighborhood of Navesink, includes 196 one-bedroom and 48 two-bedroom apartment layouts, along with 60 three-bedroom townhome-style units.
The complex was built in 1981 and renovated in 1999, comprising 20 two-story buildings with private courtyard entrances. Uranowitz, meantime, noted that 1980s-era properties within the submarket have the lowest vacancy rate and account for some 11 percent of the apartment inventory, based on age.
Apartment and property amenities include private patios and balconies, controlled-access entry, a swimming pool with sundeck and winding trails for hiking, biking and jogging, Gebroe-Hammer said. The complex also boasts proximity to the Highlands Terminal, which offers direct ferry service to Manhattan and bus and rail links at nearby Red Bank and Middletown.
“Thousand Oaks stood out for its ideal location, high occupancy rates, enduring rent potential and numerous market-unique features, including the high concentration of townhome-style units,” Brecher said. “The buyer plans to continue with and expand upon the in-place capital improvements in order to reposition the property.”