Marcus & Millichap closes biggest NJ multifamily trade of 2020

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A real estate investment firm run by former Colony Northstar
boss David Hamamoto and ex-WeWork executive Granit Gjonbalaj has paid $92
million for two New Jersey apartment properties.

Marcus & Millichap brokered the sale of the portfolio
comprised of 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

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 chairman David Hamamoto and 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.”

“All parties involved had reasons to close in 2020 and
through the hard work of seller and buyer, we completed this sale at the buzzer
on New Year’s Eve,” said Anton.

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.

“Marcus & Millichap’s collaborative culture encourages
agents from throughout the country to work together on behalf of clients and
this transaction is an excellent example of the results that can be achieved
through cooperation,” added Gatto.

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