The Essex at 78-102 Washington Ave. in Belleville — Courtesy: Veerman Asset Management
By Joshua Burd
The developer of a newly built, 158-unit apartment building in Belleville has reaped $55.5 million from its sale of the property, in a deal arranged by Veerman Asset Management.
Manveer Sanghera, the brokerage firm’s CEO and founder, represented the New Jersey-based seller in the transaction at 78-102 Washington Ave. The property known as The Essex traded after a marketing campaign that drew significant interest from both regional and out-of-state investors, including the New York-based family office that ultimately won the deal as part of a Section 1031 like-kind exchange.
The transaction marks the fifth property sold by VAM on the developer’s behalf, the firm said, noting that the depth of interest enabled it to negotiate a closing prior to full stabilization.
“This asset entered the market at the very start of its lease-up, during one of the most volatile interest rate environments in recent memory,” Sanghera said. “Despite the noise of rapidly rising rates, VAM secured a contract at roughly 50 percent occupancy. The strong interest from both local and out-of-state buyers generated multiple competitive offers, which we strategically leveraged to negotiate pre-stabilized closing terms that were vital to the seller’s timing. Our ability to navigate and execute transactions of this complexity continues to underscore VAM’s strength in delivering successful outcomes for our clients across the region.”
CBRE announced earlier this week that it arranged $35.5 million in acquisition financing for the buyer. According to VAM, the property appealed to investors thanks in part to the affordability of its rents relative to competing new-construction assets in the region, as well as a 25-year tax payment in lieu of taxes agreement that provides meaningful operating stability and long-term tax savings.
Completed at the end of 2024, the property has amenities such as a rooftop terrace, a resident lounge and a fitness center, as well as garage parking and two ground-floor retail spaces. It’s also minutes from Route 21, providing renters with quick access to area’s highway network.
VAM, meantime, said the sale represents one of the largest multifamily trades in Essex County over the past year and highlights the continued demand for new construction in northern New Jersey. Other professionals involved in the deal included seller’s attorney Mark Sokolich and buyer’s attorney Khoren Bandazian of Giordano Halleran & Ciesla PC, who played a key role in securing both the acquisition and the successful transfer of the PILOT.
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