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Located steps from the Tonnella Avenue Light Rain Station – along with a NJ Transit bus stop with direct service to New York City – luxury multifamily community Solo at North Bergen recently traded hands for $89 million.

Red Bank-based Denholtz Properties announced its acquisition of the 214-unit property located at 4828 Tonnelle Ave. Aug. 21.

Berkadia Institutional Solutions Senior Managing Director Nat Gambuzza and Senior Director Spencer Beriont of the company’s Morristown office represented the seller, New York-based SYM Investments, in the transaction, that firm announced three days later.

According to Berkadia, a joint venture of Berkshire Hathaway and Jefferies Financial Group, the sale reflects a per-unit price of $416,000.

On Aug. 29, KeyBank Real Estate Capital of Cleveland announced it arranged a $49.8 million Fannie Mae non-recourse, first mortgage loan for the acquisition of Solo at North Bergen. Senior Vice President and Head of NYC and Philadelphia Alan Isenstadt, Vice President Bruce Kaskey and Senior Vice President Joe Tinti arranged the financing.

Built in two phases, with the second completed in 2022, Solo at North Bergen is comprised of a trio of three-story buildings with 138 units and a single five-story building with 76 units. Amenities at the property include a 5,000-square-foot clubhouse with billiards and gaming tables, an outdoor swimming pool with grilling stations and outdoor sauna and a community dog run.

At 98% leased, residents have responded to the community’s offerings. And, according to Beriont, investors were drawn in kind, specifically to the property’s “proximity to mass transportation, the quality of build, and its 30-year tax pilot which limits buyer’s tax exposure for the future.”

Added Gambuzza, “The property went under contract while Phase 2 was still being built, providing the seller an opportunity to enter a hard contract prior to the significant interest rate increases seen over the past several months.”

KeyBank said it also provided original acquisition financing with a bridge loan on Phase I of the project to Sym Investments in 2021, allowing time for Phase II’s delivery.

“This transaction required creativity in a challenging market environment,” Isenstadt said in an Aug. 29 statement. “We were able to secure the best available terms from Fannie Mae.”

Denholtz’s portfolio features other transit-oriented developments in the Garden State, including the 57-unit The Rail at Red Bank and the developing, 143-unit The Rail at Bound Brook in Somerset County, which broke ground earlier this year.

“North Bergen’s growing population and unparalleled access to many of the region’s largest employment and entertainment hubs makes it a highly desirable location,” Stephen Cassidy, president of Denholtz Properties, said in a prepared statement. “This acquisition speaks to our commitment to expanding our multifamily portfolio through an intelligent and strategic approach to growth. We look forward to deploying our time-tested residential management platform at the property to create one of northern New Jersey’s premier residential communities.”

The growth of Denholtz’s multifamily properties extends beyond New Jersey’s borders, as well, with the company acquiring a 394-unit, Class A property in Murfreesboro, Tenn., and a 289-unit community in Kannapolis, N.C. in recent years.

Editor’s note: This story was updated at 11:41 a.m. ET on Aug. 30, 2023, to include financing information about the transaction from KeyBank Real Estate Capital.