By Joshua Burd
The owner of three AVE residential properties in New Jersey and Pennsylvania is seeking new investors or buyers, brokers with HFF said, touting a value-add opportunity with more than 800 units.
The capital markets firm announced that it has been retained to arrange the sale or joint venture equity recapitalization of the portfolio in Clifton, Somerset and Malvern, Pennsylvania. Korman Communities manages the properties, which comprise 822 units and are driven by the company’s furnished apartment business model.
The Clifton property, located at 743 Passaic Ave., was built in 2007 and includes 258 apartments, while the Somerset location at 199 Pierce St. was built in 2001 and has 300 units. Each of the three properties are more than 90 percent leased, but HFF said the complexes are “perfectly positioned for unit upgrades,” given that only 9 percent of the total portfolio has been upgraded.
“The portfolio claims strategic locations that have witnessed outstanding market trends and robust fundamentals, poised for future rent growth and low vacancy due to continual demand,” HFF said in an offering memorandum. “All properties offer major transportation options, near some of the busiest community highways in each state, which in turn has cultivated a large constituent of renters who work at nearby major employment hubs.”
Korman currently leases 46 percent of the portfolio as furnished apartments, while 54 percent are offered as non-furnished units, HFF said. The brokerage team also touted amenities such as clubrooms and cafes, resort-style pools, fitness centers and business centers.
HFF’s Jose Cruz, Stephen Simonellim, Mark Thomson, Kevin O’Hearn, Mark Mahasky and Russell Mapes are leading the marketing team, with Jim Cadranell overseeing the financing effort.