New Owners Of $40M Apartment Building In West Orange Nail Down $27.5M In Financing

WEST ORANGE, NJ — The new owners of an apartment building in West Orange that recently sold for more than $40 million have nailed down $27.5 million in acquisition financing, a firm announced Wednesday.

According to JLL Capital Market, “The West” – a 70-unit, multi-family property at 555 Northfield Avenue – has traded ownership for a price of $40.8 million.

The seller was a joint venture between Varma Real Estate and Garas Development. The buyer was a joint venture between Invel Capital and Pearlmark Real Estate.

The new owner has also secured $27.5 million in acquisition financing for the building, JLL Capital said.

Built in 2023, the building features spacious one- to three-bedroom layouts averaging 1,305 square feet. Amenities include a fitness center, yoga studio, two rooftop terraces, resident clubhouse and outdoor BBQ areas.

The property also has 1,785 square feet of ground floor retail space, which is fully occupied, JLL Capital said.

In addition to the recently built, multi-family community, there is a newly constructed 17,000-square-foot Primrose School secured by a long-term lease that sits on the same tax parcel and serves as part of the loan collateral.

“West Orange itself benefits from strong demographics with the one-mile radius showing $247,000 average household income and 83 percent white collar employees,” the firm said. “Class A product remains limited due to land scarcity and strict zoning regulations limiting new development opportunities.”

“This market is expected to remain highly competitive and supply constrained for the foreseeable future,” the firm added.

“The West represented an exceptional opportunity to acquire a recently delivered asset in one of New Jersey's most supply-constrained submarkets with significant income upside through mark-to-market rent adjustments and implementation of additional revenue streams,” senior managing director Michael Oliver said.

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