Sale marks successful culmination of value-add strategy at formerly distressed property
East Rutherford, N.J. (November 4, 2021) – Diversified Properties and its joint venture partner, North Jersey Builders Group, announce the sale of 480 Flatz, a fully occupied four-story, 35-unit luxury multifamily building located at 480 Paterson Avenue in East Rutherford, N.J. for $11.6 million. Diversified Properties and North Jersey Builders Group were represented by Gebroe-Hammer President Ken Uranowitz and Senior Vice President Debbie Pomerantz in the sale to a private investor.
Prior to Diversified Properties’ acquisition, the site at 480 Paterson Avenue was a vacant, half-acre bank-owned foreclosure with little hope of future development. However, the company was confident that its unparalleled experience in revitalizing distressed assets paired with its executive team’s creativity, ingenuity and problem-solving abilities provided the tools necessary to successfully unlock value from the site.
The Diversified Properties and North Jersey Builders Group teams recognized that property’s convenient location between Routes 3, 17, and 21 and just a short ride from the Meadowlands Sports Complex featuring MetLife Stadium and the American Dream mega-mall, paired with a significant shortage in new housing in the New York City metropolitan area, provided the ideal conditions for an ambitious repositioning into a multifamily building.
Leveraging substantial experience in driving value from similar sites, the executive leadership teams at Diversified Properties and North Jersey Builders Group knew it would be critical to deliver an institutional quality product at the site. Echoing the highest standards of luxury multifamily living, each of 480 Flatz’s 35 one, two and three-bedroom units feature designer kitchens outfitted with granite countertops and stainless-steel appliances as well as in-unit washers and dryers. Designed by Thomas J. Brennan Architects with engineering provided by MCB Engineering Associates and construction managed by Morris Construction Management, Diversified Properties’ affiliated construction management firm, 480 Flatz’s modern and well-appointed residential units are complemented by a contemporary exterior design as well as convenient, ample onsite surface parking and elevator service.
The partners announced the completion of 480 Flatz in March and celebrated full occupancy in July. With the sale of the 480 Flatz, Diversified Properties has added another success story to its deep history of bringing challenging and complex value-add projects to life.
“The significant interest we received from a diverse slate of buyers speaks to the robust demand for high-quality, well-located multifamily assets in the northern New Jersey market,” said Nicholas Minoia, Founder and Managing Principal of Diversified Properties. “Through our unmatched ability to unlock value from distressed assets, we successfully repositioned a bank foreclosure and created an in-demand asset and successful investment in a market where prime development opportunities are far and few between.”
“As East Rutherford’s newest and most visible apartment-community asset, 480 Flatz is an important anchor for the borough’s thriving business district,” said Pomerantz. “From world-class shopping, premier cultural centers, outdoor recreation and entertainment venues to transit and highway connectivity, 480 Flatz presented a rare-to-market multifamily investment opportunity in the high-barrier-to-entry Bergen County.”
Since its inception in 2000, Diversified Properties has developed real estate valued at more than $1.5 billion and boasts a portfolio valued in excess of $500 million representing a wide range of property types. 480 Flatz is the latest project in the company’s pipeline of in-demand multifamily projects. The firm’s recently completed joint ventures include 30 Court, a 58-unit ultra-luxury multifamily building in Morristown, N.J., as well as Summit Lane and Meadow Ridge featuring 374 luxury apartment units in the Town of Newburgh, N.Y., Summit Terrace, a 270-unit luxury apartment community in New Windsor, N.Y. and Summit Court, a multi-phase luxury residential community with 396 units, located in Union, N.J.