NEWARK – A New Jersey-based real estate investment and management firm has continued its two-year buying spree in the greater Newark area by adding the Southgate Gardens apartments to its portfolio in December.
The $19 million acquisition of the 150-unit complex located at 24 Marvin Drive, across the road from the University of Delaware’s football stadium and adjacent to the STAR Campus, pushes investments by Montium in the First State over $100 million since December 2019, according to county land records.
In October, the firm bought the Iron Hill Apartments off Old Baltimore Pike southeast of Newark for $32.1 million. In 2019, it bought the Liberty Square apartment complex in Newark for $32.5 million and in 2020 it bought the Hidden Creek Apartments near Newark for $18.75 million.
The $19 million sale of Southgate Gardens translates to a per unit cost of more than $126,000, or about $11,000 cheaper than its October purchase of Iron Hill. Upgraded units at Southgate Gardens are renting for $1,425 for a one-bedroom unit while two-bedroom units are going for $1,625, according to online listings.
The multi-family real estate market has been particularly hot in Delaware, with half of the Top 10 most expensive sales last year coming from the sector. Most of that interest is concentrated in New Castle County, where out-of-state investors like Montium have been pouring tens of millions into upgradable middle-tier complexes that can attract workers from the greater Philadelphia area or the University of Delaware.
The 2-year-old Montium targets non-trophy properties in East Coast markets that it can invest remodels into, raising the value to Class B levels. It is an end-to-end firm, which invests in acquisitions and remodels while managing maintenance and leasing afterward.
“Our site selection process is robust, ranging from market analysis and risk assessment to mapping out comprehensive budgets and schedules. This finely-honed process allows us to confidently seek out properties that promise resilient performance,” the firm says on its website.
Montium did not respond to requests for comment on its recent Delaware investments.
Aside from its four Delaware properties, it owns and manages 29 other complexes in New York, New Jersey and Pennsylvania, with the majority of them in the greater Philadelphia area.
