Merion Multifamily Fund III acquired a pre-identified, “off market” four-property apartment portfolio consisting of 640 multifamily apartment units located in three distinct New Jersey sub-markets in April 2021.
The properties were constructed in 2013, 2014, 2016 and 2019 and all experienced swift lease-up. The portfolio of assets had performed very well over the past year despite the negative effects of the COVID-19 pandemic, maintaining high occupancies and very little delinquency, mirroring Merion’s experience with its portfolio of high-quality, well-located communities. The seller was interested in working with Merion due to surety of close, ease of transacting under one contract and was concerned with subjecting their properties and staff to the operational disruption that takes place during an open market bidding process amid a pandemic.
Merion plans to make limited interior upgrades throughout the portfolio in conjunction with implementation of Merion’s property management, maintenance management and revenue management systems, to maximize net operating income. The portfolio fits well within Merion’s strategy to acquire well located suburban multifamily assets that have a compete amenity package with quality design and construction that will minimize spending on deferred maintenance and help protect current equity returns and offers immediate cash flow to investors.
