Kushner Companies just jumped back into the New Jersey apartment market.
The company paid $57.5 million for a 338-unit portfolio in Hasbrouck Heights. The deals is Kushner’s first Garden State apartment purchase since the company sold off a $2 billion portfolio in 2007 to AIG for roughly $2 billion, the largest real estate transaction in the history of New Jersey.
“We strongly believe that multi-family properties are a resilient and important asset class and we have been and will continue to grow our portfolio in this sector in markets across the country,” said Jared Kuishner, CEO of the firm.
“We are very bullish on the fundamentals around the apartment sector right now. On a relative basis, there has been very little new construction over the past five years, while population and demand have both grown.”
Kushner said he’s focused on infill locations and properties that can be improved through upgrades and efficient management.
The Hasbrouk Heights properties, Skyline Apartments and Boulevard Apartments, were bought from the original builders, a partnership between Hekemian & Co. and Herbert Klein.
Ivan Dochter, of Excel Realty Advisors, brokered the off market deal. Jaime and Matthew Weiss, of Weiss Realty, represented Skyline and Boulevard Associates in the investment transaction, one of the largest in Bergen County in recent history.
“Our close relationship with the Klein family and our local Bergen County area market knowledge played an important role in the completion of this deal” commented Jaime Weiss.
“This is the highest price on record we are aware of for a garden apartment complex in Bergen County and speaks volumes for the property owners, Hekemian & Company and Herbert Klein, recognized leaders in apartment rental property ownership and management. Multi-family vacancies are in the low single-digit range and rent growth is rising providing a perfect selling opportunity for our client and we were able to work out a successful deal with Kushner.”
Kushner has bought over 5,300 apartments across the country in the past year.