RUTHERFORD, NJ—The Kislak Company Inc. helped a client use a novel 98-year ground lease to take control of the Union Bridge Apartments, the largest multifamily property in Rutherford, with 115 units located at 152 Grand Avenue and 153 Darwin Avenue. The tranasaction included an initial payment of $9,980,000 and will include annual payments of an undisclosed amount over the life of the lease.
"There was no change of title, that's something that the owner was very specific about,” Kislak vice president Andrew Scheinerman tells GlobeSt.com exclusively. “Because it was 98 years, the bank treated it like a normal mortgage, 75% financing, and my buyer will pay the owner a ground lease payment every year. Over the course of the next 98 years, this is a $70 million lease, essentially.”
The arrangement is similar to a “triple net” CVS or Walgreen's lease, says Jason Pucci, Kislak's chief operating officer, who also spoke exclusively with GlobeSt.com. “It's very rare for a transaction like this to happen with an apartment complex, but it worked for everyone,” Pucci says.
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Steve Lubetkin
Steve Lubetkin is the New Jersey and Philadelphia editor for GlobeSt.com. He is currently filling in covering Chicago and Midwest markets until a new permanent editor is named. He previously filled in covering Atlanta. Steve’s journalism background includes print and broadcast reporting for NJ news organizations. His audio and video work for GlobeSt.com has been honored by the Garden State Journalists Association, and he has also been recognized for video by the New Jersey Chapter of the Society of Professional Journalists. He has produced audio podcasts on CRE topics for the NAR Commercial Division and the CCIM Institute. Steve has also served (from August 2017 to March 2018) as national broadcast news correspondent for CEOReport.com, a news website focused on practical advice for senior executives in small- and medium-sized companies. Steve also reports on-camera and covers conferences for NJSpotlight.com, a public policy news coverage website focused on New Jersey government and industry; and for clients of StateBroadcastNews.com, a division of The Lubetkin Media Companies LLC. Steve has been the computer columnist for the Jewish Community Voice of Southern New Jersey, since 1996. Steve is co-author, with Toronto-based podcasting pioneer Donna Papacosta, of the book, The Business of Podcasting: How to Take Your Podcasting Passion from the Personal to the Professional. You can email Steve at [email protected].
