NEPTUNE, NJ-In a multiple company deal, the Orbach Group and Phoenix Realty Group (PRG) have purchased three properties totaling 472 apartments in Neptune, South River and Long Branch, NJ from AIG for $46.5 million.
The purchase was part of an overall transaction that AIG selling three additional New Jersey apartment communities sold to Vantage Properties and Angelo, Gordon & Co. Vantage/Angelo, Gordon went to contract with AIG, then Orbach/Phoenix came in and acquired their three projects. All the deals closed simultaneously, with Orbach and PRG acquiring the properties subject to the existing long-term financing on two of the three properties. “AIG had the underlying contract,” explains Meyer Orbach, president of Englewood Cliffs, NJ-based Orbach Group, to GlobeSt.com. “We all worked together.”
The projects acquired are: Jumping Brook Apartments in Neptune (308 units in 28 buildings), Leonardine Gardens in South River (140 units in eight buildings) and Marine Gardens on the oceanfront in Long Branch (24 units in two buildings). Nearly $2.5 million will be spent across all three properties to landscaping and renovating units.
The additions complement Orbach’s existing portfolio, Meyer Orbach says. “We have a lot of properties in South River, as well as in Edison, Highland Park and Princeton,” he says. “We like multifamily because it’s a stable cash flow.”
Marine Gardens is fully occupied, and the other projects also are in the 90s in occupancy, he adds. “The region continues to show a strong demand for middle-market apartments that offer an attractive lifestyle at a time when home prices remain out of reach for the majority of local working families, especially those who commute to jobs in Manhattan and North Jersey,” said Udi Kore, PRG vice president, in a statement. ‘’Orbach has proved to be an excellent operator in this space, and we are very pleased to be collaborating with them again.”
Earlier this year, Orbach and PRG acquired a 13-building residential portfolio on West 49th Street in Manhattan. Orbach plans to keep looking for more acquisitions in New Jersey and beyond. “We own 2,500 units in New Jersey, more than half our portfolio,” Meyer Orbach says. “We’ll do as much as we can do.”
Barry Berkowitz, managing director of Newmark Knight Frank Capital Group, procured the equity for the buying group which acquired a significant New Jersey multifamily portfolio of properties from AIG Pool 1.
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