CUSHMAN & WAKEFIELD INKS SALE OF UNION, N.J., RESIDENTIAL DEVELOPMENT SITE
15-Acre Former National Envelope Corporation Site Sold for Residential Development
UNION, N.J., March 21, 2014 – Cushman & Wakefield’s Metropolitan Area Capital Markets Group has orchestrated the sale of a fully approved, 15-acre residential development parcel at 400 Clermont Terrace in Union Township. Diversified Realty Advisors of Summit, NJ, in venture with the Fidelco Realty Group from Millburn, NJ, purchased the former National Envelope site, which will be redeveloped as a residential community of 140 for-sale townhomes and 130 rental apartments.
Eastern Union County is a mature, competition-constrained market that, for decades, has seen limited new residential construction especially rental housing, according to Cushman & Wakefield’s Brian Whitmer, who handled the assignment with team members Andrew Merin, David Bernhaut, Gary Gabriel, and Ryan Dowd. “This has led to stable rent growth and a low, single-digit vacancy rate,” he said. “It also has made it difficult to assemble and entitle multifamily development sites.”
Within this context, 400 Clermont Terrace is desirably positioned one mile west of New Jersey Transit’s Union Station. “Union Township is transforming the area in the vicinity of the rail station into a Transit Village, and this property will benefit from the resulting positive momentum and appreciation,” Whitmer noted.
Cushman & Wakefield took close to one dozen bids for 400 Clermont Terrace. The offering was pursued by a broad group of builders and developers, ranging from the largest national developers down to Northern New Jersey’s premier private multifamily players.
Whitmer credits EnviroFinance Group, the seller, for creating such a highly sought-after opportunity. “EnviroFinance identified an underutilized property, completed environmental remediation to bring it to residential development standards, and secured entitlements for the site,” he said. “This unlocked significant value. In turn, Diversified Realty Advisors and Fidelco Realty Group, which have a strong local presence and a particular expertise in transit-oriented development, came into the transaction with high confidence in the future success of the property. This is a great addition to Diversified and Fidelco’s rapidly growing portfolio of properties throughout the northeastern corridor.”
“EFG is proud to have eliminated a distressed sore spot from the community and prepared the way for a new development that will blend with and contribute to the surrounding neighborhood,” said Mike McMullen, executive vice president.
400 Clermont Terrace is located off of Morris Avenue, Union’s “main street,” within walking distance from Kean University and an NJ Transit rail station. Its neighborhood is a well-established residential area, with amenities such as day-care facilities and a baseball field bordering the property. It is just 15 minutes from multiple regional thoroughfares, including the New Jersey Turnpike, Garden State Parkway, Route 22 and I-78.
Based in East Rutherford, N.J., Cushman & Wakefield’s Metropolitan Area Capital Markets Group specializes exclusively in investment sales of office, industrial, multifamily and retail properties throughout New Jersey, New York, Fairfield County, Connecticut, Pennsylvania, and Delaware. The team has completed more than $17 billion worth of transactions since 2000, closing on $1.5 billion in 2013.
About EFG: EnviroFinance® Group (EFG) is a land reuse and redevelopment company with a national reputation for successfully cleaning up and repositioning environmentally challenged sites. We acquire these properties with our own capital, remediate them and return them to use in a form that is not only protective of public health and safety, but that contributes to the local community. Our environmental, engineering, regulatory and real estate expertise is in-house. We do not outsource the key project management, planning, regulatory or entitlement activities to other firms that are compensated based on hourly billings rather than results.