N.J. firm buys Newark-area apartments for $32M
Jacob Ownes - DBT
NEWARK – A New Jersey-based real estate investment firm bought the Iron Hill Apartments in October for $32.1 million, continuing a hot multifamily real estate market in the state.
Montium, an owner-operator of multifamily complexes across the Mid-Atlantic region, acquired the 234-unit complex from Maryland-based firm Rimsi Corp.on Oct. 5, according to county property records.
The complex, located at 2 Burleigh Court off Old Baltimore Pike southeast of Newark, features 78 units each of one-, two- and three-bedroom units. The sale price translates to a per unit cost of more than $137,000.
The acquisition of the 226,000-square-foot facility marks the third investment by Montium in Delaware in the last three years. In 2019, it bought the Liberty Square apartment complex in
Newark for $32.5 million and last year it bought the Hidden Creek Apartments near Newark for $18.75 million.
With Iron Hill, Montium will get a complex that averages full occupancy but needs updates – reportedly 90% of units haven’t been updated since the complex was built in 1978, according to a real estate listing.
Unlike its other two complexes, Iron Hill does feature three-bedroom, two-bathroom units, which is a rarity at many complexes today. Current rents are $288 per month below the competitive rental communities on average, with rates running between $1,200 and $1,600 for units between 800 and 1,100 square feet, according to Apartsments.com.
Neither Montium nor Rimsi responded to a request for comment on the sale brokered by Transwestern.
The Iron Hill sale continued a stretch of high-value multifamily sales over the past year.
In July, a New York real estate investment firm acquired the 286-unit Edge at Greentree apartments in Claymont in a $51.5 million deal. Then in August a Pennsylvania real estate investment firm bought the 204-unit Carillon Woodsapartments in Millsboro in a $43 million deal. In December 2020, a New Jersey-based real estate investment firm acquired the 120-unit Garrisonapartment complex in New Castle for $30.6 million.