KISLAK COMPLETES $136 MILLION SALE OF RACHEL GARDENS IN MONTVILLE, NJ - 764 Units Trade in Morris County
WOODBRIDGE, N.J., July 25, 2014 — The Kislak Company, Inc., the dominant investment real estate sales firm in the tri-state region, announced the $136,000,000 sale of Rachel Gardens, a 764-unit apartment complex on over 98 acres in the Pine Brook section of Montville, N.J. Vice president Jeffrey Squires represented both parties in the transaction. President Robert Holland and chief operating officer Jason Pucci provided transaction management and support.
The sale of Rachel Gardens is the single largest sale of a multifamily property in New Jersey in terms of price since 2011 based on data available from CoStar. It is also among the largest multifamily properties in New Jersey.
The purchaser is an affiliate of New York-based Cammeby’s International whose other holdings include the Woolworth Building in Manhattan and a substantial portfolio of commercial and residential real estate.
“We are pleased to purchase Rachel Gardens. It is a unique property in northern New Jersey and opportunities like this don’t come along very often,” said a spokesman for Cammeby’s.
Kislak was court-appointed as the exclusive broker to sell the property with a $135,000,000 listing price and marketed it over a limited four-week period in April and May. Given the rare opportunity to acquire a large well-performing multifamily property with value-added upside in northern New Jersey; there was extremely strong interest from many well-qualified local, regional and national investors, several with international participants.
Following Kislak’s recommendation, the $136,000,000 sale of Rachel Gardens to Cammeby’s was approved by the sellers. Cammeby’s offer was $1,000,000 above the listing price with a considerable non-contingent deposit and no due diligence. Three other interested parties made offers at $135,000,000.
“Given the limited period during which we marketed the property, Jeff and our team generated an extraordinary level of interest and ultimately produced the highest and best price, which was $1,000,000 above the listing price,” said Holland. “I am immensely proud of our team and its accomplishments. Time and again, we produce astonishing results of record cap rates and prices for our clients strengthening our reputation as the most successful broker of multifamily and other investment properties in and around New Jersey.”
“There are only a handful of apartment complexes of the size and quality of Rachel Gardens in northern New Jersey and they rarely, if ever, sell,” said Squires. “Our exclusive listing represented an extraordinary and unique opportunity for investors to acquire a large well-performing property in an affluent community only thirty minutes from Manhattan. Occupancy at Rachel Gardens is consistently high with waiting lists for some units. These factors contributed to a frenzy of interest from many investors, several at a sub 5% cap rate.”
Constructed between 1989 and 1999, Rachel Gardens consists of 531 two bedroom apartments, 226 one-bedroom apartments and seven studio apartments in 32 three-story buildings. 596 of the units are market rate and 168 of the units are affordable. It is the only apartment property in Montville.
Montville was ranked 13th in the nation in Money magazine's 2013 Best Places to Live rankings, the second-highest in New Jersey of the top 50 nationwide. In 2012, Morris County was ranked the 10th wealthiest county in the nation by the American Community Survey
About The Kislak Company, Inc.
The Kislak Company, Inc., which is headquartered in Woodbridge, N.J., is recognized as the dominant investment sales company serving the multifamily and retail markets. Established in 1906, Kislak’s market leadership position and longevity are due to its ability to offer clients a personalized, hands-on approach, coupled with the unrivaled expertise of its long-tenured team of professionals. Kislak’s prestigious client base includes individual investors and owners, partnerships, financial institutions, and REITs. The firm’s 25 professionals provide comprehensive market coverage throughout New Jersey, New York, Pennsylvania and Delaware.
Now in its 108th year, Kislak was among a select group of firms recognized as a 2013 Power Broker by CoStar Group, Inc. for multifamily sales transactions in northern New Jersey and this was the firm’s eighth consecutive recognition.