156-164 University Ave. in Newark — Courtesy: IPRG
By Joshua Burd
An investor has purchased a portfolio of 15 apartments and commercial space in Newark for $5.3 million, in a deal arranged by Investment Property Realty Group.
In a news release, the brokerage team said the sale includes four buildings directly across from Rutgers University’s Newark campus and one block from New Jersey Institute of Technology. That translated to strong interest for the portfolio at 156-164 University Ave. and 53-55 Bleeker St., which the buyer ultimately plans to redevelop as student housing.
IPRG New Jersey Managing Partner Yanni Marmarou, Director Andrea Nestico and Associate Homer De Leon brokered the sale.
“This transaction demonstrates the continued strength of Newark’s downtown investment market and the demand for well-located assets with both stable cash flow and long-term redevelopment potential,” Nestico said.
IPRG said the portfolio, which sold for 96 percent of the asking price and at a capitalization rate of 5.9 percent, was 80 percent occupied at the time of the deal. Its former owner also recently signed a new 10-year lease with Dunkin’, which invested $100,000 into a new store buildout to further enhance the property’s income stability and tenant quality.
The listing team completed the deal within just a few weeks of launching the marketing campaign, generating significant investor interest and securing more than 10 offers and facilitating a quick, efficient closing, the news release said. The portfolio benefited from its location in Newark’s vibrant academic and cultural corridor, IPRG said, as well as its proximity to mass transit such as NJ Transit and PATH service and to Newark Liberty International Airport.
