$92.5M multifamily sale completed by Marcus & Millichap in Northern New Jersey

Marcus & Millichap said Jan. 12 it sold two multifamily portfolios totaling 24 properties and 702 units in the Essex County towns of East Orange and Irvington. The $92.5 million sales price makes the transaction one of the largest 2020 New Jersey multifamily sales.

Richard Gatto and Fahri Ozturk in Marcus & Millichap’s New Jersey office represented the seller, a partnership between ERCT Capital Group, MAVeCap and Metropolitan America. Eric Anton and Chris Warner in the firm’s Manhattan office represented the purchaser, Spaxel LLC, a New York-based multifamily developer and operator led by managing partner Granit Gjonbalaj.

“This was a special deal for us since we worked with the seller to assemble the entire 702-unit portfolio over the past two and a half years,” said Gatto. “It was rewarding to help our client generate a significant return, even more so because we were able to execute in the middle of a pandemic.”

“This portfolio offered an opportunity to invest in an urban area with strong metrics, coupled with low vacancy and substantial upside,” added Ozturk. “We received significant interest with 12 qualified offers within short period of time and sent out multiple contracts, showing strong interest from the market.”

The properties are the North Jersey Commuter Portfolio, a 390-unit collection in East Orange and the North Jersey Garden Portfolio, a 312-apartment portfolio in Irvington.

Brian Hosey and John Krueger are Marcus & Millichap’s brokers of record in New Jersey and New York, respectively.

Progress Capital, which has closed over $40 Billion in commercial loans and $150 Million in directly funded bridge loans, arranged the financing with Arbor. Brad Domenico, partner at Progress Capital worked on Dec. 31 to close on an $81,000,000 acquisition loan for Granit Gjonbalaj, Managing Partner of Spaxel to purchase the 24 properties totaling 701 units in East Orange and Irvington.