Adam Silver: report
Queens-based Vantage Properties has closed on its acquisition of six multi-family properties that comprise AIG’s Central New Jersey multi-family portfolio, for $241.5 million, the company announced today. Investment firm Angelo, Gordon & Co. acted as an equity partner in the transaction, which involved 2,200 units in Plainsboro, Neptune, Long Branch, Matawan and South River. The purchase was previously reported, but with today’s announcement comes news that Vantage immediately flipped three of those buildings and will launch a new subsidiary as part of the transaction.
Vantage sold three of the buildings containing a total of 472 units to New Jersey-based Lighthouse Properties. The three remaining properties will become part of a new subsidiary launched by Vantage simultaneously with the transaction called Candlebrook. The firm’s new arm will focus on suburban rental properties, a market with which Vantage has had little involvement since selling the Fox Run apartments in 2010.
“Our acquisition of the AIG portfolio and the launch of our Candlebrook subsidiary significantly diversify our existing real estate development business into suburban markets,” said Neil Rubler, president and CEO of Vantage Properties. “We look forward to leveraging our successful urban model and prior experience with our Fox Run apartments in the New Jersey market to provide high-quality housing to suburban residents.”
Vantage currently owns 10,000 units in about 150 buildings in New York City, but was hit with several lawsuits last year for allegedly harassing rent-regulated tenants. The company said it was looking to diversify its holdings, as it sees opportunities in the multi-family sector in suburban areas of Philadelphia and other mid-Atlantic states. — Adam Fusfeld