The purchase price works out to $39,869 per unit, or $37.76 per sf. Ken Wellan of Marcus & Millichap represented the seller, Shirley Court Holdings LP. This is the second investment in RiverOak Fund IV, a $25-million value-added real estate fund founded a month ago.
"The properties have been poorly managed in recent years," says Stephen DeNardo, RiverOak managing director. "We will create value both by renovating the property where needed and through superior management." The JV plans a $530,000 investment for renovation. He estimated net operating income to increase by 77% within the first three years of ownership.
"We are very experienced in this market and with this class of property," says NOVO's Amy Connelly. "We expect to increase occupancy in the near-term and realize a significant return on investment within the first three to five years."
Earlier this month, the Stamford, CT-based RiverOak bought 55 Lane Rd. in Fairfield, NJ, JVing with Cofinance Inc. for its first investment in RiverOak Fund IV.
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