Biggest Deal in Newark Hints at Prolonged “Renaissance” and Exciting Newark CRE Summit
by Josh Anderson
NEWARK, NJ — The renaissance in Newark is far from over. And if recent deals say anything about where the market is headed, it may only bigger and better.
In March, the Kislak Co. Inc. broadcast the sale of Pavilion Apartments, one of Newark’s largest multifamily properties designed by Ludwig Mies van der Rohe, a pioneer of modernist architecture, for $70.5 Million USD. Advertised on behalf of longtime client Pavilion Broad Street, LLC, Senior Vice President, Joni Sweetwood, represented the seller and secured the purchaser, The Pavilion Towers, LLC, a regionally based investor.
According to data from CoStar, this sale of the Pavilion Apartments marks the largest of a multifamily property in Newark by more than $18 million USD and is also one of the largest multifamily properties in the state of New Jersey. Existing debt with the addition of significant equity were also included with the terms of sale.
Joni Sweetwood said, “This was an extraordinary sale in a burgeoning market. Over the last several years, we have been witnessing Newark’s long-awaited renaissance with rapid development throughout the city and population growth. More people are moving to downtown Newark given its ongoing transformation and easy commute to New York City. Pavilion Apartments are well positioned to meet the growing demand for affordable luxury housing in Newark’s economic and cultural center.”
Ludwig Mies van der Rohe designed three towers in Newark, two of which are Pavilion Apartments, after completing the landmark Seagram Building in New York City. Built in 1958, the Pavilion Apartments saw numerous capital improvements before the sale.
At 136 Dr. Martin Luther King Jr. Blvd. in Newark’s Central Ward, just north of the city’s downtown, the property is located adjacent to a NJ Trans it rail and light rail station, Newark Broad Street Station. These apartments consist of two adjacent 22-story high-rise buildings with 680 residential units (which includes a mix of studios as well as one- and two-bedroom apartments) and two retail spaces on more than 8 acres.
Robert Holland, president, said, “This was a once-in-a-generation sale. Properties of this size and stature rarely trade. From start to finish, Joni did an absolutely amazing job facilitating the sale. For years, she had been working with the seller and analyzing the market to optimize the timing of our marketing and eventual sale. Joni also procured the ideal buyer who will benefit long-term as the property is enhanced further, residential demand in Newark increases even more and Newark’s renaissance continues.”
Transactions like this will likely be the focal point of panels such as Newark CRE 360: The Next Chapter in Newark’s Renaissance and Identifying the Real Estate Industry Market Peak at CapRE’s upcoming Fourth Annual Newark CRE Summit on July 19, 2018. Other topics on deck include:
- The evolving capital markets arena in 2018: Analysis of active debt, equity and alternative financing sources
- Newark adaptive reuse & the modern tech-savvy tenant base: Analysis of the new and emerging office and retail tenants taking down space in Brick City
- Analysis of and opportunities and activity in the for-rent and for-sale multifamily arenas, as well as affordable housing
- Transit system expansion & TOD: Can regional infrastructure and resiliency sufficiently support growth in the various property types?
- Redevelopment and repositioning of assets
- Multifamily operations strategies that add value
- The types of investors deploying capital in Newark
- The city’s vision for development and economic growth
Continue the New Jersey Conversation. Check out our Upcoming Events. For more on the most exciting activity in Newark, check out previous CapRE Insider Reports:
- Taking Advantage of Newark’s New MX-3 Zoning, Developer Strategizes 12-Story Multifamily Building
- Newark Community Flourishes with Massive Groundbreaking on Arts Common
- SJP and Aetna Realty Strategize $1 Billion Real Estate Boost Near Newark Commuter Station
- Shaquille O’Neal’s Newark Tower Tops Off Construction