PLAINFIELD, NJ-Pentium Properties, one of the largest multifamily owners in the city of Plainfield, has acquired a distressed $7.53-million note for a nine building, 182-unit portfolio scattered throughout the municipality, GlobeSt.com has learned exclusively. Note-seller Gebroe-Hammer Associates says the portfolio ranges from mid-rise to garden apartment buildings all within a few blocks of each other, including Beacon Village (750 E. Front St.); Settles Place (711 Plainfield Ave.); The Crescent (130-134 Crescent Ave.); Tudor Arms (744 Watchung Ave.); and Park Regency (713 Liberty St./716 Field Ave.).
Steven Tenenbaum, assistant vice president at Gebroe-Hammer, describes the deal as “an atypical opportunity” to acquire well-built buildings that have “tremendous” repositioning potential. “Our client, who has other holdings in the area, plans to implement several upgrades to bring each property up to competitive market rates,” he says, in a statement following the deal. Tenenbaum identified and represented the buyer on the transaction with Gebroe’s executive vice president David Jarvis.
Currently, average rents for the area range from $850 a month for a one-bedroom unit to $1,200 for a three-bedroom unit, and occupancy rates across the portfolio are 95%, according to data from Gebroe. Tenenbaum notes that the city’s strong working-class demographic and urban setting “yield strong market fundamentals,” citing value-add opportunities within the portfolio.
The properties are located near transit, shopping, schools and major highways. Nicknamed the “Queen City,” Plainfield has two NJ Transit rail stations along the Raritan Valley Line and Amtrak service is available at Metropark, just six miles away. The city also is served by NJ Transit bus lines offering direct links to Port Authority Bus Terminal, Newark and other local routes.
Ken Uranowitz, managing director at Gebroe-Hammer Associates, says that Pentium has been a long-time client and has represented the buyer in the acquisition of more than 300 units throughout Plainfield, including bankruptcy sales prior to this transaction. In the distressed market overall, Gebroe has sold close to $100 million in note and Sec. 363 Bankruptcy sales for several major banks and debtors-in-possession, and Uranowitz says more are on the way.
“We are currently the exclusive broker for a major New York bank involving the sale of 12 multi-family notes throughout New Jersey,” he says. “In this particular case, the note sale closed one week prior to the Sherriff’s Sale, at which the buyer was able to acquire the deed quickly.”
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