KRE Group, Oxford Realty & Verde Capital acquire 288-unit rental property in Plainsboro
Plainsboro, NJ — The KRE Group, a full-service real estate investment and management company with more than five decades of experience, and Oxford Realty Group, a family-owned and operated real estate management company with properties throughout New Jersey, Pennsylvania and New York, announced that they have jointly acquired Deer Creek, a 288-unit rental community in Plainsboro, in partnership with Verde Capital.
Deer Creek is a collection of one- and two-bedroom apartments just off of Plainsboro Road, about four miles from Route 1 and five miles from the NJ Tpke. The partnership paid $45 million for the asset.
Deer Creek is the second property KRE and Oxford have jointly acquired in the last four months. In November, 2015, the companies purchased Royal Gardens, a 550-unit rental community in Piscataway, for $107.25 million, in partnership with Blue Vista Capital Management.
Like Royal Gardens, the partnership was attracted to Deer Creek because it offers an excellent opportunity to improve the asset’s profitability through capital improvements. “We believe Deer Creek is a property with enormous potential,” said Darin Raiken, director of acquisitions for The KRE Group. “We plan on executing a strategy similar to the one we’ve implemented at Royal Gardens, investing in capital improvements to enhance tenant quality of life and increase the value of the property.”Deer Creek is situated on a 34-acre campus of apartment buildings, tree-lined streets and manicured lawns that border a wooded section of the Cranbury Brook. It includes an outdoor pool, two tennis courts and access to a scenic nature trail that winds along the brook and leads to a nearby park. As part of the property upgrades, KRE will construct a new fitness center, according to Raiken.
The partnership has a number of renovations planned for Deer Creek, including luxury finishes such as granite kitchen countertops, stainless steel appliances and in-unit washer/dryers. Unit layouts will also be reconfigured to create more open, contemporary living spaces. “The Deer Creek and Royal Gardens deals are both part of an ongoing initiative to actively grow our portfolio of multifamily properties through value-add acquisitions,” said Jonathan Kushner, president of The KRE Group. “We are big believers in the future of the New Jersey rental market, as well as the growth potential reinventing select properties offers. We will continue to look for similar opportunities that allow us to deploy capital wisely and cater to our strengths as a company.” KRE is also one of the most active residential real estate developers in the region.
The company has developed iconic communities in Jersey City such as Grove Pointe, 225 Grand and 18 Park, and is currently developing “Journal Squared”, a collection of three residential towers in Jersey City’s historic Journal Square neighborhood that will ultimately comprise 1,838 rental residences and 36,000 s/f of commercial space.
Other prominent projects in development include Madison Farms, a 100-acre mixed-use property in Bethlehem Township, PA that is slated for 837 luxury residences and 140,000 square feet of retail space; and Hudson Lights, a 1,000,000 square-foot mixed-use project in Fort Lee, NJ. Based in Highland Park, NJ, Oxford Realty Group is a family-owned and operated company that has grown into one of the most prominent leaders in residential development, with more than 50 years of experience in the field. Oxford and the Bridgewater-based KRE have a long-standing business relationship. The two companies have developed and owned several multifamily properties in partnership in the past and continue to expand their portfolio of jointly owned assets. “We are pleased to be partnering with KRE and Oxford for this project, two firms with extensive multifamily operating experience,” said Jacob Reiter, President of Verde Capital. “We have the right team in place to make our purchase of Deer Creek a very successful investment.”