PLAINFIELD, NJ-The economic aftermath of over-leveraged multifamily properties continues to yield a number of bankruptcy sales throughout Northern New Jersey, including two recent local portfolio dispositions for more than $22.1 million involving a total of 409 units. Gebroe-Hammer Associates, a leading commercial real estate brokerage firm specializing in the sale of apartment-rental buildings as well as office and retail properties, orchestrated the complex bankruptcy sales as the exclusive court-approved brokerage firm.
The larger portfolio package, acquired for $16.082 million by a private investor who is a longtime Gebroe-Hammer client, includes 108 units at Netherwood Village (825 E. Front St.); 102 units at Watchung Gardens (802 E. Front St.); and 58 units at Greenbrook Village (733 E. Front St.). Offering a mix of one-, two- and three-bedroom units, the garden-apartment complexes are well situated in the heart of the city. As the US Bankruptcy Court-approved broker, Gebroe-Hammer’s Steven Tenenbaum, assistant vice president and Plainfield market specialist, identified the buyer who owns several apartment-rental buildings in the surrounding area.
Nearby, executive vice president Joel Schwartz was retained by the owner, who was in Chapter 11 Bankruptcy, to market a three-property portfolio, Cornell Apartments, Pingry Arms and Executive Arms, comprised of 141 units. Again, as the US Bankruptcy Court-approved exclusive broker, Schwartz conducted a Section 363 sale in accordance with the court’s order. After receiving several non-contingent bids with non-refundable deposits, the Gebroe-Hammer veteran broker closed the sale in 35 days with the winning bidder.
The buyer, Plainfield Park LLC, had previously owned the two mid-rise buildings and single garden-apartment complex located at 735 Park Ave., 606 Crescent Ave. and 315 W. 8th St., respectively, several years ago. The all-cash transaction required the cooperation and approvals of numerous involved parties, including the existing lender and other unsecured creditors and their respective attorneys.
“Both buyers seized the opportunity to acquire these distressed assets and add value in order to bring them up to competitive market standards through substantial exterior and interior upgrades,” says Ken Uranowitz, managing director of Gebroe-Hammer. “The use of 363 Bankruptcy Sales has become more prevalent because it streamlines the sale transfer process free and clear of liens, claims and other encumbrances associated with a Chapter 11 Bankruptcy.” Gebroe-Hammer closed these Plainfield bankruptcy transactions within a few weeks of finalizing the $10.5-million bankruptcy sale of an East Orange multifamily portfolio comprised of four buildings with 270 total units.
Legal counsel for the Netherwood Village, Watchung Gardens and Greenbrook Village portfolio was provided by Edward Bortz, Esq. of Englewood Cliffs, NJ on behalf of the buyer. Representation for the Cornell, Pingry and Executive Arms sale was provided by Allen Popowitz, Esq. of Brach Eichler LLC on behalf of the seller/debtor; Timothy Duggan, Esq. of Stark & Stark on behalf of the buyer; and Thomas Walsh, Esq. of Trenk, DiPasquale, Webster, Della Fera & Sodono, PC, who represented the seller’s bankruptcy interests.
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