Pavilion Apartments at 136 Dr. Martin Luther King Jr. Blvd. in Newark — Courtesy: The Kislak Co. Inc.
By Joshua Burd
An investor has paid more than $70 million for a two-building, 680-unit apartment property just north of downtown Newark, according to brokers with The Kislak Co. Inc.
Known as Pavilion Apartments, the property includes two adjacent 22-story towers at 136 Dr. Martin Luther King Jr. Blvd. that are visible from Interstate 280. Kislak represented Pavilion Broad Street LLC in the sale, while also representing the buyer.
The firm identified the new owner as The Pavilion Towers LLC, a regionally based investor. Joni Sweetwood handled the assignment for Woodbridge-based Kislak. The terms of the sale included the assumption of existing debt with the addition of significant equity.
“This was an extraordinary sale in a burgeoning market,” said Sweetwood, a senior vice president. “Over the last several years, we have been witnessing Newark’s long-awaited renaissance with rapid development throughout the city and population growth. More and more people are moving to downtown Newark given its ongoing transformation and easy commute to New York City.
“Pavilion Apartments are well positioned to meet the growing demand for affordable luxury housing in Newark’s economic and cultural center.”
She said the $70.5 million deal represents the single-largest sale of a multifamily property in Newark by more than $18 million, citing data from CoStar. She also noted that the buildings, which include units ranging from studios to two-bedrooms, were designed by the pioneering architect Ludwig Mies van der Rohe.
Built in 1958, the Pavilion Apartments are among three towers designed by the German-American architect, Kislak said. They benefit from a location adjacent to the Newark Broad Street station and other mass transit.
“This was a once-in-a-generation sale,” said Robert Holland, president of Woodbridge-based Kislak. “Properties of this size and stature rarely trade.”
“From start to finish, Joni did an absolutely amazing job facilitating the sale. For years, she had been working with the seller and analyzing the market to optimize the timing of our marketing and eventual sale. Joni also procured the ideal buyer who will benefit long-term as the property is enhanced further, residential demand in Newark increases even more and Newark’s renaissance continues.”