EAST ORANGE, NJ-Gaia Real Estate Co. has partnered with Harel Insurance Investments & Financial Services Ltd., one of Israel’s largest insurance companies, to invest in residential real estate in the US and, specifically, the Tri-State area.
To that end, Gaia has acquired several hundred residential units in three separate deals: a 48-unit building on Manhattan’s Upper West Side at 5 W. 91st St. for $16.75 million; a 20-story, 265-unit high-rise here for $30 million; and a 92-unit multifamily property at 38 Balaban Rd. in Colchester, Connecticut for $5.4 million.
“The partnership will give Gaia another financing option that will help us close deals faster and give us a competitive advantage and flexibility that is necessary in today’s market for success,” says Gaia managing partner Danny Fishman. He explains that all three properties will be re-branded under the Gaia name and managed by Vision Property Management--a full subsidiary of Gaia.
According to Fishman, Harel Insurance will invest equity of up to 50% in Gaia deals along with other institutional investors and high-net worth individuals. Harel will also provide Gaia with two credit lines--one for long-term loans and the other for short-term bridge loans to give Gaia the flexibility to buy all cash deals and later refinance.
“Gaia enjoys a strong and high-quality deal flow and is working closely with banks, private equity funds, REITs and other property operators that want to liquidate their assets,” says Amir Yerushalmi, Gaia’s other managing partner, who also reveals that Gaia will soon close on two more transactions--one that involves a large commercial building.
The East Orange asset, in particular, at 320 Harrison St., has 337,455 rentable square feet, 265 residential units and ground floor commercial space. According to Gaia, substantial unit renovations and property-wide capital improvements will be undertaken, including the inclusion of more amenities and conversion of commercial space to residential units.
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