Phoenix, Orbach Snap Up Three AIG Apartment Properties for $46.5M
- Aug 03, 2011
August 3, 2011
By Barbra Murray, Contributing Editor
Phoenix Realty Group and The Orbach Group have just increased their presence in Central New Jersey’s apartment market by 472 units with the acquisition of three properties from AIG for $46.3 million, including the assumption of existing debt on two of the assets. Newmark Knight Frank Capital Group procured the equity for the deal.
Phoenix and Orbach’s new purchase includes the 308-unit Jumping Brook Apartments in Neptune, the 140-unit Leonardine Gardens in South River and, on the beach in Long Branch, the 24-unit Marine Gardens. The partners plan to shell out approximately $2.5 million on upgrades. Marine Gardens is the only one of the three that is 100 percent occupied, but with a makeover in their future and premium market conditions, full lease up at the other properties is certainly well within reach.
Already loud, the call for rental accommodations in Central New Jersey is only growing louder. According to a report by commercial real estate market analysis provider Reis Inc., the steadily declining apartment vacancy rate in the area dropped 20 basis points down to 3.5 percent in the second quarter. Also, rents are slowly, but surely, ticking upward.
“The region continues to show a strong demand for middle-market apartments that offer an attractive lifestyle at a time when home prices remain out of reach for the majority of local working families, especially those who commute to jobs in Manhattan and North Jersey,” Udi Kore, vice president with Phoenix, said.
Phoenix and Orbach’s purchase was part of a larger AIG deal that involved the sale of three other Central New Jersey assets to Vantage Properties and Angelo, Gordon & Co. Those apartment communities, Pheasant Hollow and Quail Ridge in Plainsboro and Long Brook in Matawan, encompass over 1,700 units.