N.J. investor buys 3 Wilmington apartment complexes for $9M+
WILMINGTON – A New Jersey-based real estate investment and management firm has acquired three apartment complexes in or near the city in deals totaling nearly $9.2 million over the past few months.
The buyer is Yada Properties, a firm with other multi-family holdings in New Jersey run by principal Robert Eisenberg. The sales were announced June 30 by the Philadelphia-based brokerage that arranged them, Rittenhouse Realty Advisors (RRA).
In February, Yada acquired the 78-unit Jefferson Park/Adams Street Apartments located at 2600 N. Jefferson St. in Baynard Village for more than $3.4 million. Two months later, it bought the 42-unit Holly Oak Manor complex located at 1 Jill Court in Holly Oak for more than $4.8 million. Finally, Yada bought the 15-unit building located at 822 N. Adams St. near the Trinity Vicinity neighborhood in Wilmington for more than $846,000 in June.
According to RRA, the units were fully occupied at the time of each sale with “very strong rent collections, especially considering the impact the COVID-19 pandemic has had on the U.S. economy.”
During a time of uncertainty, RRA has been able to maintain a steady deal flow in the Wilmington market due to increased interest from investors the company works with from the New York and North Jersey markets.
Bob DiPasquale, a senior associate at RRA who worked on the transaction, told Delaware Business Times that the investor group has a large portfolio in the New York City region, but because of increasing competition in that market as well as rent control laws that limit how much a landlord can increase rent, he convinced them to look south.
“Delaware is kind of untapped and you’re able to buy product in the Wilmington market that has higher yields than what they’re seeing in some of these other primary markets like Jersey City, Hoboken or New York,” he said. “We really think that Wilmington should have a bit of a spotlight on it right now.”
Revitalization efforts in the city of Wilmington led by developers like Buccini/Pollin Group as well as increasing economic development at New Castle County sites like the future state-of-the-art Amazon fulfillment center in Newport are convincing out-of-state investors to put their dollars in Delaware now before the market heats up, DiPasquale said, adding that Wilmington’s close proximity to other major metro markets is also appealing to multi-family residential property investors who are looking for value-add buys.
“Having Interstate 95 run through the gut of your city is never a bad thing,” he said. “Delaware also has a lot of really strong, long-term owners, which allows investors to get a property with great bones and a good name to add to.”
The acquisitions are the latest New Castle County multi-family residential complexes to change hands in the past year, with Delaware-based Evergreen Apartment Group buying the 116-unit River Commons Apartments in downtown Wilmington, for $7 million in November.
In May 2019, Pennsylvania-based Galman Group acquired the former Studio Green and Park Place apartment complexes in Newark, renaming them Thorn and Lehigh Flats, for about $41 million. On Monday, Galman announced that it had completed the first stage of its planned $30 million renovation, rehabbing about 180 of the 702 units there.
Editor’s Note: This story has been updated to better identify the buyer of the properties.
By Jacob Owens