The KRE Group has bought a 228-unit New Jersey rental community for $70 million in partnership with investment firm, Avenue Realty Capital
Summit Hill at 100 Stone Hill Road, is a garden style apartment community in Springfield, NJ, in western Union County.
It is the latest of three garden apartment acquisitions totaling over $222 million that KRE has completed in 15 months, comprising over 1,065 apartment units. The Summit Hill acquisition is part of a strategic initiative KRE has launched to grow its “value-add” multifamily business.
The company purchased Deer Creek, a 288-unit rental community in Plainsboro, NJ, for $45.5 million in February, 2016, and Royal Gardens, a 550-unit rental property in Piscataway, NJ, for $107.25 million in November, 2015.
“The common thread in all three of these assets is they are well-located properties in high-demand, supply-constrained markets, and they all offer the opportunity to create value through investments in capital improvements, unit renovations and improved property management,” said Darin Raiken, director of acquisitions for The KRE Group.
Steve Scioscia, co-founder of Avenue Realty Capital (ARC), said, “We are very pleased to joint venture with KRE as our operating partner and specifically with this investment as it fits perfectly in our value-add multifamily investment strategy in the New York Metropolitan Area.
Over the past three years, Avenue Realty Capital has funded 36 properties through its equity investment platform.
Jonathan Kushner, president of The KRE Group, said, “Since beginning this strategic initiative, we have deployed more than $222 million in acquisition capital and we continue to actively seek out new opportunities.
“As the New Jersey rental market continues to evolve, we believe this is a component of the market that is poised for incredible growth.”
Gebroe-Hammer Associates arranged the sale. Executive vice president Greg Pine along with vice president Gehane Triarsi represented the seller and managing director Joseph Brecher procured the buyer.
“Today’s premium sale prices, soaring investor demand and the inexpensive cost of debt are the catalysts driving many long-time owners to capitalize on their assets,” said Pine.