Forest Hill Terrace Apartments at 325 Grafton Ave. in Newark — Courtesy: Gebroe-Hammer Associates
By Joshua Burd
The longtime owner of a 452-unit garden apartment complex in Newark has sold the property for $50 million, in a deal arranged by Gebroe-Hammer Associates.
The multifamily brokerage represented Kamson Corp. in its sale of Forest Hill Terrace Apartments, a property located at 325 Grafton Ave. in the city’s North Ward. The buyer was a private family office entity that owns several other properties in Newark.
Gebroe-Hammer Executive Vice President David Jarvis marketed the property, while also procuring the buyer, according to a news release. Allen Popowitz of Brach Eichler LLC also provided legal counsel on behalf of the seller.
“High-density apartment properties like Forest Hill Terrace are at the core of Newark’s transformation,” said Jarvis, Gebroe-Hammer’s Newark market specialist. “These types of properties present a rare investment acquisition opportunity and are therefore considered premium product among experienced multifamily investors who are familiar with the city’s past, its present and its future potential.
“This property mirrors Newark’s rebirth and promise. Forest Hill Terrace is an iconic, 1940s-era property with boundless value-add potential, which is what interested the buyer, who is a longtime client of Gebroe-Hammer.”
The broker noted that Newark’s residential population includes almost 80 percent renters. Forest Hill Terrace, part of the city’s suburban Forest Hill neighborhood, is directly across from the 360-acre Branch Brook Park and offers access to open space and outdoor recreation areas.
Forest Hill Terrace includes a mix of 94 studios, 297 one-bedroom and 60 two-bedroom layouts, the news release said. The complex features modern kitchens and refurbished bathrooms, professionally landscaped courtyards and on-premises paved-surface parking and garages.
The sale also included a four-bedroom home that is on the property.
“Growth and development bode well for existing apartment properties such as Forest Hill Terrace,” Jarvis said. “Even if a portion of the current tenant base finds homeownership affordable, the millennial/young professional pipeline will continue to feed demand for well-located, transit-accessible apartment rentals.”
Jarvis touted the site’s proximity to city subway and bus links to downtown and easy access to the Garden State Parkway, New Jersey Turnpike and Interstate 280. It also provides access to shops and schools, including the city’s Science High School and Technology High School.
“The city has garnered the attention of powerhouses like Amazon, Whole Foods and renowned chefs thanks to an extensive master plan that is feeding a development pipeline of over $4 billion,” Jarvis said. “In turn, this progress is feeding multi-performance and investment at a renewed pace.”
