CBRE on Tuesday announced the $30 million sale of a 191-unit, two-building workforce housing portfolio located in Newark.
The CBRE Institutional Properties team of Jeffrey Dunne, Jeremy Neuer, Steve Bardsley, David Gavin, Rich Gatto, Fahri Ozturk, Travis Langer and Zach McHale represented OneWall Communities, a Stamford, Connecticut-based apartment owner and operator, in the transaction. The CBRE team was also responsible for procuring the buyer.
The portfolio featured two apartment buildings located at 103 Chancellor Ave. and 25 Van Velsor Place in the Weequahic neighborhood of Newark, just minutes from the central business district.
The assets were predominately comprised of 1- and 2-bedroom apartments with rents well below competing properties in the market. The below market in-place rents offer a unique opportunity to implement a value-add capital improvement program up turn of the units and as a result, move rents toward market levels and enhance the tenant experience.
Dunne, a CBRE vice chairman, commented: “We are very pleased to have represented OneWall Communities in this sale. The value-add potential of the assets drew significant interest from the investor community. The buyer thoroughly understood the portfolio’s potential from the outset and acted quickly and aggressively to secure the deal.”
The sale of 103 Chancellor Ave. and 25 Van Velsor Place comes on the heels of the team’s recent $53 million sale of OneWall Communities’ 301-unit lifestyle-workforce housing portfolio located in East Orange. Separately, the CBRE team recently sold 24 Jones, a 152-unit Class A apartment community located in the University Heights neighborhood of Newark, for $36.5 million.
The CBRE Institutional Properties team has several other attractive investment opportunities on the market, including Six Points at Bloomfield Station, a 176-unit luxury apartment community in Bloomfield that was built in 2020; FIVE20 Views, a 111-unit Class A apartment community with unobstructed views of the New York skyline located in Fairview; and Colonial Gardens, a 97-unit garden style apartment community with significant upside potential in Trenton.