ORANGE TOWNSHIP, NJ-In three separate transactions, the Kislak Co. has completed five multifamily sales in Essex County totaling $12,075,000, GlobeSt.com has learned exclusively. Reynolds Terrace Apartments, a 120-unit property in Orange, sold for $7.7 million; two properties with 76 units in East Orange sold for $3.1 million; and two properties with 36 units and 10 retail spaces in Irvington for $1.3 million. All of the properties were sold to private investors.
Sellers often overvalue their properties, “but in Essex, they’re real sellers,” Joni Sweetwood, senior VP of Woodbridge-based Kislak tells GlobeSt.com. Cap rates for the area range from 7% to 9%, depending on the asset quality.
With banks now lending, investors are looking, literally, for solidity. “The people I’ve spoken to feel ‘Where can you put your money? Into paper. It can be worthless,’” Sweetwood says. “Buildings are real estate can’t just evaporate.”
Reynolds Terrace Apartments is a nine-story brick high-rise with 120 units and on-site parking on 1.6 acres in Orange, with 93% occupancy. The deal was a loan assumption from Fannie Mae. The East Orange sales were of a 39-unit property on South Clinton Street for $1.25 million and a 37-unit property on Webster Place for $1.85 million. Both properties are four-story brick buildings with elevators and a combination of one, two and three-bedroom units. Financing was provided by Investors Savings Bank. The properties were sold on behalf of a court-appointed receiver.
The Irvington sales were of a 24-unit property with four retail spaces for $800,000 and a 12-unit property with six retail spaces for $500,000, both of which are on Springfield Avenue.
In addition, Sweetwood has recently sold land in downtown South Orange next to the train station for $2.05 million. The approximately 1.5-acre tract, a foreclosed former Mercedes-Benz location, has been approved for a 60-unit multifamily building with ground-floor retail. The buyer, another private investor, intends to pursue the development, Sweetwood says.
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