Developer Vantage Properties has partnered with investment firm Angelo, Gordon & Co. in a $245 million, 2,200-apartment buy in Plainsboro, N.J., marking one of the biggest apartment sales ever in the tri-state area, according to the Wall Street Journal. The portfolio of rental units, located near Princeton, N.J., is being sold by insurer AIG, which bought up the properties from developer Kushner Companies in 2007. The deal comes amidst a bullish outlook for multi-family properties nationwide — with vacancy rates dropping and opportunities for new development limited, more investors have been pursuing existing rental apartment buys, experts say.
Jeffrey Otteau, president of real estate appraisal firm Otteau Valuation Group, said that New Jersey, in particular, is likely to attract more multi-family investors in the near future. “Rental properties in central New Jersey are generally older, and there is an opportunity to make improvements that would increase pricing,” Otteau said. “New supply will take several years to come to market, so the existing apartment complexes will have the market to themselves for a while.” [WSJ]