EAST ORANGE, NJ-Phoenix Realty Group has purchased 548 distressed rental units here, most of which date from the 1930s and will be renovated to fit current market standards in an area, according to Steve Scioscia, PRG senior vice president. The assets will be improved and operated by local operator TreeTop Development. "This newest investment continues PRG's history of revitalizing housing in urban areas close to public transportation," said Scioscia, who leads multifamily and development acquisitions in New York, New Jersey and Connecticut.

The East Orange portfolio consists of mostly one- and two-bedroom units in multi-story buildings. Rents and occupancy are low compared with other apartment buildings in the market, and the comprehensive redevelopment plan will include unit and management improvements to benefit tenants and achieve market-level rental rates.

“We're coordinating with the city government as we work to enhance the neighborhood and deliver a high-quality, product to these residents,” says Adam Mermelstein, a TreeTop principal. The multi-million-dollar capital improvements program will include “new landscaping, upgraded lobbies and common areas and modernized elevators, as well as new roofs, entryway doors and building systems on certain buildings,” he adds.