Hartz Mountain Industries, which began acquiring luxury multi-family rental properties in 2010, has purchased a stake in Roseland Management, the property management arm of Roseland Property Company.
The company has also engaged Roseland for its largest third-party management assignment – more than 1100 units in four New Jersey properties.
Roseland is expected to manage other Hartz residential buildings when construction on new buildings is complete and existing management agreements expire.
Roseland and Hartz, with partner Garden State Properties, own the Monaco, a 524-unit luxury residence that opened in May and is now more than 75% leased at record rents, spawning the partnership.
“We have managed office, industrial, retail and hospitality asset classes for more than 40 years, and if there is one thing we, know, it’s the rewards that expertise brings to operating real estate,” says Emanuel Stern, president and COO of Hartz Mountain Industries.
“After observing Roseland in action on Monaco, we knew that if we wanted to maximize the performance of our residential portfolio for our tenants and our bottom line, the fastest route was to affiliate with the best. ”
Carl Goldberg, partner in Roseland Property, said, “Roseland Management’s model is to impart the standards for Roseland Property to leading properties from esteemed owners – and Hartz Mountain’s multi-family strategy aligns with our standards perfectly.
“Principals of Hartz and Roseland have maintained a dialogue for many years on development issues. Our business cultures are complementary, which allowed our collaboration on Monaco to evolve into this partnership quickly.”
According to the partners, the relationship is important strategically and practically to both firms, activating a set of resources that make each bigger in every sense of the term.
“The critical audiences in development are municipalities and lenders, and the combination of human, strategic and capital resources that this partnership brings to projects is new to the industry,” said Goldberg.
“Cities are different than they were 10 years ago, and so is the lending climate; this partnership responds to that evolution – and to the momentous opportunities we expect to see as a result of anticipated changes over the next 10 years.”
Hartz currently owns more than 1,600 residential units in three states, and expects to acquire and build another 3,500 units in 3-5 years, depending on market conditions.
Roseland owns and manages more than 8,000 apartments in five states. Roseland and Hartz are in the preliminary stages of developing luxury towers on three sites.
“Roseland introduced me to the phrase “renter by choice” and that immediately formed for me a new understanding of the high-end rental market and Roseland’s strategy,” said Stern.
“We had not articulated our strategy in that same vocabulary – but it fit: we want to attract tenants who have every housing option open to them, and select our properties for their superior attributes.”
The initial properties Roseland is managing from the Hartz portfolio are: Town & Country Apartments, 271 units, Westwood, NJ; Morris Crossing, 116 units, Morris Plains, NJ. Chancery Square, 131 units, Morristown, NJ; Monaco, 524 units, Jersey City, New Jersey.
