FLORHAM PARK, NJ — AIG Global Real Estate Investment has sold a 12-property apartment portfolio totaling 2,811 units located in New Jersey, Pennsylvania and Delaware, the remains of a portfolio it acquired from Kushner Companies in 2007. The buyer is thought to be New York-based AION Partners in a deal brokered by Holliday Fenoglio Fowler. AION did not respond to a request from GlobeSt.com for comment.
Holliday Fenoglio Fowler marketed the offering exclusively on behalf of AIG. The buyer purchased the portfolio for approximately $165.4 million free and clear of existing debt. This transaction represents the largest multi-housing sale of 2015 in New Jersey, according to Real Capital Analytics.
"It's a strong time in the market, pricing is still aggressive, and there are a lot of buyers out there" HFF's José Cruz tells GlobeSt.com exclusively. "There were multiple rounds of bidding, and there is lots of upside potential in the properties. It's rare that you have the opportunity to buy something of this size."
Cruz, an HFF senior managing director, led the investment sales team that closed the deal, with senior managing directors Andrew Scandalios and Mark Thomson, managing director Kevin O'Hearn and associate directors Michael Oliver and Steve Simonelli.
In June 2007, Kushner Companies completed the sale of more than 17,500 apartment units in five states to a partnership of AIG and Morgan Properties, King of Prussia, PA. In October 2013, Morgan reportedly bought out AIG and another partner and took sole ownership of about 15,000 units. AIG retained the balance of the units, which would make up the bulk of the transaction announced today.
"In the second half of 2015, AIG looked at its portfolio and said, 'Let's take advantage of the market,'" Cruz says.
The well-leased, garden-style communities offer a mix of one-, two- and three-bedroom units averaging approximately 800 square feet in size. Amenity packages vary by community but include fitness centers, swimming pools, tennis courts, playgrounds and dog parks. Several of the properties have undergone interior unit upgrades with proven rental premiums. Seven of the properties are located in New Jersey; three are in Pennsylvania; and two in Delaware.
Here is a table of the properties and information about them:
| Portfolio Summary | |||||
| Property Name | Town | County | State | # | |
| Woodlane | Burlington | Burlington | NJ | 276 | |
| The Willows | Barrington | Camden | NJ | 347 | |
| Chateau Ridge | Pine Hills | Camden | NJ | 255 | |
| Fox Ridge | Hi-Nella | Camden | NJ | 246 | |
| Joralemon | Belleville | Essex | NJ | 62 | |
| Maplewood Apartments | Maplewood | Essex | NJ | 9 | |
| Woodbury | Deptford | Gloucester | NJ | 99 | |
| The Brook at Colonial Park | Harrisburg | Dauphin | PA | 626 | |
| Chelsea Village | Leola | Lancaster | PA | 238 | |
| Whispering Hills | Allentown | Lehigh | PA | 220 | |
| Pride Court | Newark | New Castle | DE | 297 | |
| University Village | Newark | New Castle | DE | 136 | |
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Steve Lubetkin
Steve Lubetkin is the New Jersey and Philadelphia editor for GlobeSt.com. He is currently filling in covering Chicago and Midwest markets until a new permanent editor is named. He previously filled in covering Atlanta. Steve’s journalism background includes print and broadcast reporting for NJ news organizations. His audio and video work for GlobeSt.com has been honored by the Garden State Journalists Association, and he has also been recognized for video by the New Jersey Chapter of the Society of Professional Journalists. He has produced audio podcasts on CRE topics for the NAR Commercial Division and the CCIM Institute. Steve has also served (from August 2017 to March 2018) as national broadcast news correspondent for CEOReport.com, a news website focused on practical advice for senior executives in small- and medium-sized companies. Steve also reports on-camera and covers conferences for NJSpotlight.com, a public policy news coverage website focused on New Jersey government and industry; and for clients of StateBroadcastNews.com, a division of The Lubetkin Media Companies LLC. Steve has been the computer columnist for the Jewish Community Voice of Southern New Jersey, since 1996. Steve is co-author, with Toronto-based podcasting pioneer Donna Papacosta, of the book, The Business of Podcasting: How to Take Your Podcasting Passion from the Personal to the Professional. You can email Steve at [email protected].
