ORANGE, NJ–After several years on the market with a firm asking price of $11 million, the 108-unit South Orange Towers here was quickly sold by CBRE to an out-of-state buyer for that price, the two brokers involved tell GlobeSt.com.
The $101,851-per-unit paid by the undisclosed buyer from New York is the highest recorded price ever paid in the city of Orange, according to CoStar Group database.
“At CBRE, we believe we’ve found a niche in bringing people in from outside the state to invest in ‘B’ properties in urban areas of New Jersey,” says Charles Berger, of the firm’s NJ Private Capital Group. He worked with Elli Klapper of the NY Investment Properties team to complete the transaction, representing both the seller and the buyer.
Berger, based in Saddle Brook, and Klapper of the Outer Boroughs New York office of CBRE, have teamed up on a number of such transactions involving second-tier buildings in northern New Jersey recently, including three recent sales of multi-family properties in Paterson.
“There is a great deal of demand for products of this type and multifamily in general,” says Berger. “This building in Orange is 100 % occupied, and represents a conservative investment with stable return.”
Klapper says the buyer is considering improvements that might generate increased rents. There were a number of offers on the South Orange Towers, despite the non-negotiable asking price, Klapper says, and they came within three months after CBRE began marketing the property through its national platform.
“We were able to bring in a number of interested buyers from outside New Jersey who was willing to pay more than local buyers and a deal was struck immediately,” says Berger.
One strong offer came from a West Coast buyer, the brokers said. The property had been marketed locally in New Jersey for several years by a series of brokerages before CBRE took the assignment.
Out-of-state buyers showing interest in New Jersey properties generally have a “management infrastructure” in place, says Klapper, meaning that their own management arms operate within the region – or they are affiliated with a management company that operates here.
The eight-story South Tower building is located at the conjunction of borders of South Orange, West Orange and Orange. It has a mix of studios, and one-to-four bedroom units, and amenities including covered parking, laundry facilities, a swimming pool, elevators, and an on-site superintendent and porter.
The building is located two blocks from an NJ Transit rail station, providing a 30-minute commute to New York City. It is also close to the Garden State Parkway, 1-280, and I-78.
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