Diversified JV Buys 15-Acre M-F Development Parcel in Union, NJ
- Mar 24, 2014
Diversified Realty Advisors, in a joint venture with the Fidelco Realty Group, has bought a 15-acre residential development parcel at 400 Clermont Terrace in Union Township, N.J.
The two N.J.-based companies will redevelop the former National Envelope Co. site as a residential community of 140 for-sale townhomes and 130 rental apartments. Cushman & Wakefield’s Metropolitan Area Capital Markets Group brokered the sale on behalf of the seller EnviroFinance Group.
“This site was especially attractive to the development community as Union County, and more specifically Union, is a dense, mature market, which makes assembling a large parcel capable of accommodating 270 units very difficult,” Brian Whitmer, who handled the transaction, told Commercial Property Executive. “Additionally, the site’s location near the Union NJ Transit rail station makes it very attractive to future residents who commute via public transit.”
Andrew Merin, David Bernhaut, Gary Gabriel and Ryan Down of Cushman & Wakefield also took part in orchestrating the transaction.
The land once housed manufacturing facility for National Envelope Co., which sold the site to EnviroFinance in 2013 after filing for bankruptcy, according to NJBiz.
The project’s price was not disclosed, and commencement of the construction has no set date, although it is said to be in the works imminently, according to Whitmer.
The N.J.-based brokerage firm took close to a dozen bids for 400 Clermont from from both local and national multi-family developers.
“There was a very competitive bidding process, and the buyer distinguished themselves not only quantitatively but also qualitatively,” Whitmer added referring to Diversified and Fidelco.
Northern New Jersey’s renter base is said to expand this year as high rents in New York City propel renters to seek rentals throughout the six-county region. As owners in counties closer to Manhattan are already benefitting from this trend and leveraging high occupancies to raise rents (Essex, Bergen and Hudson), demand for apartment units is sweeping further west and south into Morris, Passaic and Union counties, according Marcus and Millichap’s latest Northern NJ Apartment Report.