Woodbridge, NJ — The Kislak Company, Inc. announced the recent sale in East Orange, Essex County of the following multifamily properties on an exclusive basis: 72 units in a portfolio of four buildings at 30 Beech St., 46 South Arlington Ave., 356 William St. and 6 Glenwood Ave. for $7,400,000; 47 units in two buildings at 139 Halsted St. and 116-118 South Grove St. for $2,450,000; and another 21 units at 67 Lenox Ave. for $1,900,000.
Sales associate Julie Gralla represented the sellers of the 72-unit portfolio and 47 units and the purchasers of the Halsted and Grove Sts. and Lenox Ave. properties. Vice president Robert Squires represented the purchaser of the 72 units. Senior vice president Joni Sweetwood represented the seller of the Lenox Ave. property.
The sellers of the 72-unit portfolio were affiliates of Seaview Capital Partners LLC. TBG Halsted, LLC and TBG South Grove St., LLC were the sellers of 139 Halsted St. and 116-118 South Grove St., respectively; and 67 Lenox, LLC sold 67 Lenox Ave. The purchasers of all of the properties were private investors.
Noting the sale of the 72 unit portfolio is reflective of the current market, Gralla remarked: “Prices continue to skyrocket to well over $100,000 per unit in East Orange. The city is extremely desirable to tenants and investors with two midtown direct trains providing service to and from Manhattan in 20 minutes.”
“The sellers turned over many units after purchasing the portfolio,” added Gralla. As a result, even throughout the transaction, the portfolio’s net operating income continued to increase dramatically as rents continue to rise. This is a testimony to great management but also to East Orange’s strong rental market.”
The 72-unit, four-building portfolio contained many two and three bedroom units, and two of the four buildings were gut renovated within the last ten years. While the four buildings are within walking distance of the midtown trains, they are also easily accessed by commuters to Route 280 and the Garden State Parkway.
The properties at Halsted and South Grove St.s, located just over one mile from each other, contained 25 one bedroom units at Halsted St. and 22 one-and two-bedroom units at South Grove St. with onsite parking at both properties. “What made this deal so valuable was the extreme upside potential due to higher expenses which needed to be properly managed, as well as below market rents,” Gralla added.
Holding a long term relationship with the buyer of the Halsted and South Grove deal, Gralla is “excited to see how the buyer will transform these buildings, stabilizing the properties under his management.”
The three-story brick building with 21 units at Lenox Ave. consisted of a studio and one and two bedroom apartments, with hardwood floors, large kitchens and separate dining areas, all with upgraded electric installed in the last 10 years. The buyer of this property had purchased through Kislak several other East Orange buildings earlier this year.