UNION, NJ – Diversified Realty Advisors of Summit has purchased the former National Envelope factory site, which will be redeveloped as for-sale townhomes and 130 rental units.
Cushman & Wakefield's Metropolitan Area Capital Markets Group brokered the sale of the fully approved, 15-acre residential development parcel at 400 Clermont Terrace here. Diversified's joint venture partner for the project is Fidelco Realty Group of Millburn.
Union Township is moving to establish a Transit Village around New Jersey Transit's rail station here. The redevelopment site is located less than a mile west of the train station. “This property will benefit from the positive momentum and appreciation that will come with the Transit Village,” said Brian Whitmer of C&W.
He said there were 11 bids for the property. The offering was pursued by a broad group of builders and developers, ranging from large national companies to several major multi-family players based in New Jersey.
The eastern part of Union County is a “mature, competition-constrained market” that has seen little new residential construction, especially rental housing, in a very long time, said Whitmer, who handled the assignment with team members Andrew Merin, David Bernhaut, Gary Gabriel, and Ryan Dowd.
“This has led to stable rent growth and a low, single-digit vacancy rate,” he said. “It also has made it difficult to assemble and entitle multifamily development sites.”
Whitmer credited the seller, EnviroFinance Group, for doing the environmental remediation needed to bring the property to residential development standards and securing approvals.
“This unlocked significant value,” Whitmer said. “Diversified and Fidelco, which have a strong local presence and a particular expertise in transit-oriented development, came into the transaction with high confidence in the future success of the property.”
Mike McMullen, EnviroFinance Group EVP, said his company “is proud to have eliminated a distressed sore spot from the community and prepared the way for a new development that will blend with and contribute to the surrounding neighborhood.”
400 Clermont Terrace is located off of Morris Avenue, Union's “main street,” within walking distance of Kean University as well as the rail station.
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