SECAUCUS, NJ –Hartz Mountain Industries, which began acquiring luxury multi-family rental properties in 2010, has purchased a minority stake in Roseland Management, the property management arm of Roseland Property Company. The privately held Hartz declined to reveal the purchase price.
Hartz then engaged Roseland to manage its more than 1,100 residential units in four New Jersey properties, Roseland’s largest third-party management assignment. The projects to be managed are: Town & Country Apartments with 271 units in Westwood, NJ; Morris Crossing, with 116 units in Morris Plains, NJ; Chancery Square with 131 units in Morristown, NJ; and Monaco with 524 units in Jersey City.
Roseland and Hartz, with partner Garden State Properties, own the Monaco, helping to spawn the partnership. “This is a strategic partnership that’s come out of working with these guys for over a decade,” Emanuel Stern, president and COO of Hartz Mountain Industries, tells GlobeSt.com “It’s a natural progression for Hartz.”
Roseland is expected to manage other Hartz residential buildings as construction is complete and existing management contracts expire. Hartz currently owns more than 1600 residential units in three states, and plans to build and acquire another 3,500 units in three to five years, depending on market conditions, including developing luxury towers on three sites with Roseland. Roseland owns and manages more than 8000 apartments in five states.
As Hartz entered the multifamily sector in recent years, “I always knew I had a decision to make -- whether to manage the properties ourselves,” to outsource management or to acquire a management division specifically for multifamily, which is “very different” from other sectors, Stern says. “Roseland was the most professional I’ve seen in the in the business.”
“Roseland Management’s model is to impart the standards for Roseland Property to leading properties from esteemed owners – and Hartz Mountain’s multi-family strategy aligns with our standards perfectly,” says Carl Goldberg, partner in Roseland Property Company, in a statement. “Principals of Hartz and Roseland have maintained a dialogue for many years on development issues. Our business cultures are complementary, which allowed our collaboration on Monaco to evolve into this partnership quickly.”
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