A New York-based real estate company has acquired a Bayonne apartment community for $147.5 million, it said Monday.
Castle Lanterra Properties purchased Alexan CityView from a joint venture between an investment fund and large property manager. It has renamed the 544-unit waterfront community “Harbor Pointe,” it added.
“This is a core-plus opportunity, a Class A property that was constructed in 2010, currently with 91 percent occupancy,” Elie Rieder, owner of Suffern-based CLP, said in a prepared statement. “It is a good opportunity on a price-per-unit, cap rate and yield basis. … The area is experiencing strong economic growth and will benefit from future development.”
The property, which sits on 7.4 acres, is the first development on the Peninsula at Bayonne Harbor, a 420-acre manmade peninsula, CLP said.
“The peninsula is the only location along the Gold Coast that still has vacant land that is also master planned, without the need to repurpose any other land for construction,” Benjamin Loney, CLP’s head of acquisitions, said in a statement. “The surrounding area features a number of opportunities for growth, and we are in discussions with landowners of neighboring parcels to either joint venture with them on putting together combined amenities when they start to build, or to purchase their land to expand what we are able to offer our residents.”
CLP specializes in identifying investment opportunities in multifamily properties, and has acquired more than 3,000 units in the past two years.
“The city is excited that a company with the stature of Castle Lanterra is willing to invest capital here,” Bayonne City Administrator Joseph DeMarco said in a statement. “Like the mayor and city council, Castle Lanterra, under the leadership of Elie Rieder, sees the potential for future growth. Bayonne is on the upswing in terms of new development and attracting new residents and businesses, and we see this particular investment as an extremely positive indicator. Investors and developers are willing to put their trust in the city of Bayonne, and Castle Lanterra is going to be an important part of that transformation.”
Jones Lang LaSalle arranged the transaction.