Done Deals: HFF closes $24.25 million sale of Newark, New NJ multi-housing community

Saturday, January 18, 2014

HFF closes $24.25 million sale of Newark, New NJ multi-housing community

Mount Prospect Tower Apartments, 380 and 420 Mount Prospect Avenue,
Forest Hill Section, Newark, NJ

Jose Cruz

FLORHAM PARK, NJ – HFF announced it has closed the sale of Mount Prospect Towers, two 15-story multi-housing towers totaling 219 units in Newark, New Jersey.

HFF represented the sellers, Praedium Group and KABR Group, in this transaction. Azure Partners purchased the asset for $24.25 million or $111,000 per unit.

Mount Prospect Towers is located at 380 and 420 Mount Prospect Avenue in the Forest Hill section of Newark, and is approximately 25 minutes from Manhattan via the Holland Tunnel.

The 96 percent leased property is comprised of studio, one-, two- and three-bedroom units that are undergoing renovations with updated kitchens, baths and flooring.

Both buildings were also recently improved with new building systems, roofs and common areas. Community amenities include 24/7 doorman security and on-site indoor and outdoor parking.

Andrew Scandalios

The HFF investment sales team representing the sellers was led by senior managing directors Jose Cruz and Andrew Scandalios, managing directors Kevin O’Hearn and Jeffrey Julien and associate director Michael Oliver.

“The properties are well positioned near local demand drivers such as Saint Michael’s Medical Center, Newark Beth Israel Medical Center, Seton Hall and Rutgers University,” said Cruz.

“The Praedium Group and KABR Group have done a tremendous job in restoring and revitalizing Mount Prospect Towers and has put Azure Partners in an exceptional position for continued future success,” added Oliver.

Kevin O'Hearn

The Praedium Group is a privately-held real estate investment firm focusing on under-performing and under-valued assets throughout the United States.

The Praedium Group was formed in 1991 and since inception has completed over 350 transactions representing $9.3 billion of capital, including 70,000 multifamily units and 43.3 million square feet of commercial space.

Over the past 23 years, The Praedium Group has sponsored a series of private equity funds.

The commingled funds by The Praedium Group have attracted investors that include public and corporate pension funds, financial institutions, insurance companies, foundations and endowments. For more information, please visit www.praediumgroup.com

Jeffrey Julien

Headquartered in Ridgefield Park, NJ, the KABR Group was founded in 2008. The first two funds sponsored by the KABR Group raised approximately $45,000,000 each.

The initial fund was launched at the end of 2008 as a response to the impending real estate crisis. The KABR Group has opportunistically acquired select real estate assets through the market cycle bottom.

It has achieved success from its ability to identify, purchase and manage properties from highly motivated sellers at discounts to their intrinsic value.

KABR targets returns in excess of 18%. Unencumbered by the typical “market peak” purchases, KABR employs a fresh balance sheet to acquire and work through distressed, mismanaged and over-leveraged properties.

Azure Partners LLC (Azure) is a real estate private equity firm based in New York City focused on the opportunistic acquisition and management of real estate assets within high-growth markets in the United States.