Boston-based Davis Companies has taken an equity stake in a
718-unit New Jersey apartment portfolio.
Cushman & Wakefield announced it served as the exclusive advisor to Spaxel and Atalaya Capital Management in arranging joint venture equity for the New Jersey Workforce Housing Portfolio, an 11-building multifamily portfolio in East Orange, NJ.
Spaxel -a multifamily developer and investor led by former
WeWork development boss Granit Gjonbalaj and ex-Colony Northstar boss David
Hamamoto – acquired the portfolio for $92 million earlier this year. They secured
an $81 million acquisition loan from Arbor Commercial Mortgage.
On Wednesday, a Cushman & Wakefield team of Steven Kohn,
John Alascio, Brian Whitmer, Chuck Kohaut, Jessica Ke and TJ Sullivan announced
it represented Spaxel and Atalaya Capital Management in structuring the joint
venture with the Davis Companies.
“The portfolio’s best-in-class sponsorship, exceptional
transit-oriented location and scale were extremely appealing to investors,” said
Kohn. “The Davis Companies recognized this unique workforce housing opportunity
and was ultimately able to provide the most attractive terms and a seamless
execution for our client.”
“The acquisition and capitalization of this portfolio
establishes our partnership as one of the leading owners of NJ
workforce-housing with significant economies of scale and institutional
operations,” said Gjonbalaj, Managing Partner at Spaxel. “Together with our
partners at the Davis Companies and Atalaya Capital Management, we are
extremely excited to continue our expansion in this uniquely desirable and
affordable market, less than 30 minutes from Midtown Manhattan.”
The portfolio maintains over 96% occupancy and features
below-market rents, presenting a compelling value-add opportunity while
ensuring rents remain affordable for residents.
“The vibrant community that already exists in East Orange
along with its proximity to Manhattan makes this an attractive location for
those seeking affordable housing,” said Rachel Edwards, Vice President of
Investments at The Davis Companies. “This portfolio represents an opportunity
to work within a high growth market while, more importantly, directly
addressing the needs of our society’s workforce without creating displacement.”
Situated along South Harrison Street, Park Avenue and
Glenwood Avenue in Downtown East Orange, the portfolio is a short walk from
Brick Church Station offering rail and bus access to Manhattan in just 30 minutes.
The portfolio is also less than 10 minutes from I-280 (Exit 11A), the Garden
State Parkway (Exit 145) and I-78 (Exit 52), providing exceptional
multi-directional connectivity to the Tri-State Area.
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