PLAINSBORO, NJ—A joint venture of KRE Group and Oxford Realty Group has acquired The Addison at Princeton Meadows, a 439-unit, garden-style apartment community in Plainsboro, NJ, from Harbor Group International for $73.3 million.
Holliday Fenoglio Fowler represented the seller, a private real estate investment and management firm with worldwide assets valued in excess of $4.7 billion. HFF previously brokered the sale of the property to the seller in 2014. Joseph Brecher, managing director with Gebroe-Hammer Associates, arranged the sale and procured the buyer.
For Gebroe-Hammer, the sale marked a milestone: the firm surpassed the 4,000-unit mark in multifamily sales for Middlesex County, NJ during the past 24 months.
“Middlesex County has become one of the state’s newest high-barrier-to-entry investment markets for apartment buildings in just the past two years or so,” says Brecher, who has spearheaded Gebroe-Hammer’s expansion initiatives countywide and to the surrounding Central Jersey area. “As one of the highest-income counties in the United States and home to a high concentration of education, healthcare/pharmaceutical and Fortune-500 top employers, the region is favored by a highly educated tenant base of local and out-commuters to New York City.”
The Addison at Princeton Meadows is located at 1912 Pheasant Hollow Drive within three miles of Route 1 and two minutes from downtown Plainsboro. Situated in the affluent Princeton submarket, the property includes studio, one- and two-bedroom units averaging 759 square feet each. Community amenities include a fitness center, outdoor adult and children’s pools, and basketball and tennis courts. Additionally, the property is adjacent to Meadows at Middlesex, an 18-hole public golf course.
This is the second transaction arranged by Brecher and Gebroe-Hammer within the township on behalf of the same buyer. In February 2016, KRE and Oxford acquired 288 units at Deer Creek Apartments, located nearby at 305 Deer Creek Dr.
The HFF investment sales team representing the seller was led by senior managing director José Cruz, managing director Kevin O’Hearn and directors Michael Oliver and Steve Simonelli.
“The demand for core-plus multifamily in the state of New Jersey remains very high and investors are continuing to underwrite renovation premiums,” says Cruz.
“As the daytime and residential population have increased, particularly post-recession, so has tenant demand for amenity-filled apartment living near shopping, dining and transit,” says Brecher. “Many of these recently-sold, traditionally well-occupied apartment-rental communities have been located in established boroughs and a good majority of them have been poised for value-add repositioning. Long-time owners are opting to sell now because they recognize the current low-interest-rate environment is ideal for marketing their somewhat outdated – by today’s standards – properties, which in turn garner premium purchase prices.”