Building upon current partnerships, Hartz Mountain Industries has purchased a stake in Roseland Property Co., the companies announced Thursday.
Hartz will acquire a stake in Roseland Management, the property management arm of the developer. The move was first reported in an NJBIZ Grapevine column in May.
Hartz, based in Secaucus, and Roseland, in Millburn's Short Hills neighborhood, together own Monaco Towers, in Jersey City, along with three other multifamily properties. They also are now in the preliminary stages of developing three additional luxury towers on three sites.
"If there is one thing we know, it's the rewards that expertise brings to operating real estate," said Emanuel Stern, Hartz president and chief operating officer, in the announcement. "After observing Roseland in action on Monaco, we knew that if we wanted to maximize the performance of our residential portfolio for our tenants and our bottom line, the fastest route was to affiliate with the best."
Hartz, which owns 1,600 residential units in three states, began acquiring luxury multifamily properties in 2010. According to the announcement, Hartz expects to acquire another 3,500 residential units within the next three to five years.
Roseland, which owns and manages 8,000 apartments in five states, will be expected to take over management contracts for buildings owned by Hartz after construction is completed or current management contracts end.
Terms were not disclosed.