A joint venture between Invesco Real Estate Income Trust (INREIT) and Skylight Real Estate Partners has nabbed $113.5 million of acquisition financing to purchase a majority interest in a New Jersey multifamily asset, Commercial Observer has learned.
U.S. Bank supplied the loan for the JV’s $160.5 million acquisition of Everly Roseland, a 384,648-square-foot, 360-unit garden-style apartment community in Roseland, N.J. The 1980-built property off Nob Hill Road comprises 30 two-story buildings and is 95 percent leased.
JLL Capital Markets arranged the transaction with a debt advisory team led by Michael Klein, Matthew Pizzolato, John Rose and Gerard Quinn.
R. Scott Dennis, president and CEO of INREIT, said increased remote working flexibility during the COVID-19 pandemic has driven up demand for multifamily investments in the New York City metropolitan area well above 2020 levels, particularly in suburban areas.
“With more flexibility around work and the daily commute, the suburban locations that attracted strong demand during COVID have continued to experience strong demand growth alongside the recovery of city centers and urban areas,” Dennis said. “It’s difficult to build new housing stock in these markets, which is favorable for future leasing demand.”
Dennis added that as interest rates rise, multifamily investments will become even more attractive because the impact on higher home mortgage payments could push more people to rental communities.
Through the recapitalization of Everly Roseland, Invesco and Skylight are planning to renovate units along with upgrades to common areas and the property’s exteriors. Skylight will serve as the property manager.
“Everly Roseland is a well-performing property with a multitude of value creation strategies to unlock,” Andrew Miller, founding partner at Skylight Real Estate Partners, said in a statement. “We share the same vision as our partners at Invesco in continuing to transform Everly Roseland back to its premier status.”
The transaction marks Skylight’s third New Jersey investment in the past six months. The firm formed in early 2021.
“We were proud to support our clients, INREIT and Skylight Real Estate Partners, in their acquisition of the highly sought-after Everly Roseland community,” Kim McKee, northeast region commercial real estate manager for U.S. Bank. “As working arrangements continue to evolve, we’ll continue to look for similar opportunities that deliver value to residents and investors alike.
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