NEW YORK, NY - Phoenix Realty Group (PRG) has teamed with Gaia Real Estate Holdings (Gaia) and Harel Insurance Investments and Financial Services (Harel) of Israel to acquire the $44-million Regency Club Apartments located in the Township of Jackson, in northern Ocean County, N.J. The area serves middle-income renters commuting to the major employment centers in and around the capital of Trenton and central New Jersey. Comprising 372 units in 31 buildings, the investment was made on behalf of a PRG institutional real estate fund focused on residential assets in the tri-state region of New York, New Jersey and Connecticut.
“This is a perfect time to invest in multifamily in the tri-state area,” said Udi Kore, PRG vice president. “New Jersey has strong apartment fundamentals with virtually no new construction in more than three years and a demand that continues to outpace supply. In addition, historically low interest rates and a rental market on the upswing make value-added multifamily deals a very attractive investment for institutional capital from around the globe,” he added.
“This investment reflects our goal to offer quality rental housing affordable to working-class households and close to the kind of jobs, transit and amenities that create desirable neighborhoods,” explained Steve Scioscia, PRG senior vice president.
Regency Club Apartments’ amenities include a swimming pool, tot lot and tennis courts. A planned $2-million improvement program will modernize unit interiors, upgrade the fitness center and clubhouse, and beautify walkways, signage and landscaping, according to Amir Yerushalmi, co-founder of Gaia. This is Gaia’s eighth deal this year, with a total of $215 million in property acquisitions by the firm in the last 12 months. Holliday Fenoglio Fowler, LP (HFF) represented the seller in the transaction.
Gadi Ben Haim, head of real estate for Harel, added, "We believe in the U.S. multifamily market and in its stability and underlying opportunities, especially now that there has been a significant decrease in the rate of homeownership. Regency Club Apartments further diversifies our portfolio, ensuring a steady, low-risk cash flow.”
In the past 18 months, PRG has acquired nearly 1,400 rental units in New Jersey alone, valued at $135 million. PRG continues to actively invest in value-added multifamily properties and to pursue joint-venture development of new multifamily properties across Southern California and in the tri-state region of New York, New Jersey and Connecticut, tapping $400 million in discretionary institutional fund capital targeted for those areas. Since mid-2010, the firm has acquired more than 3,900 apartment units nationally, valued at $464 million. The firm currently owns and manages market-rate apartment properties and affordable housing in major markets across the U.S.