KRE Group Partners With Goldman Sachs Asset Management To Acquire 439-Unit Rental Property In Plainsboro, NJ

8/2/17

KRE Bolsters its Portfolio with Fourth Garden Apartment Acquisition in 20 Months

Kushner Real Estate Group (KRE) has entered into a partnership with Goldman Sachs Asset Management (GSAM) Private Real Estate to acquire a 439-unit garden style apartment community in Plainsboro, NJ.

The groups announced today that they have purchased Addison at Princeton Meadows, located at 2821 Pheasant Hollow Drive in Plainsboro, for $73.3 million. The property is located just off of Dey Road, about five miles from downtown Princeton and four miles from the Princeton Junction train station.Gebroe-Hammer Associates represented the seller, Harbor Group International, LLC, in the transaction.

“KRE’s collaboration with GSAM Private Real Estatewill enable us to reposition Addison at Princeton Meadows and realize the property’s full potential,” said Jonathan Kushner, President of KRE Group. “We’ve had considerable success acquiring similar properties, modernizing the units and amenities, and reintroducing them to the marketplace.We believe this acquisition represents another exceptional opportunity to deploy capital wisely.”

Addison at Princeton Meadows is already a popular residential community, with a current occupancy rate of 94 percent. In addition to its proximity to the Princeton Junction train station, it offers easy access to Route 1, Route 130, and the New Jersey Turnpike. Residents enjoy a number of amenities, including an outdoor pool with sundeck, lighted tennis courts, basketball courts, 24-hour fitness center, and a dog park. GSAM Private Real Estate and KRE will invest in the property’s amenities and substantially renovate unit interiors.

“We find this investment compelling due to its location within a high barrier-to-entry market, its access to high-quality public education, and the opportunity to create value through a strategic capital program,” said Joe Gorin, Managing Director within GSAM Private Real Estate.

This is the fourth garden apartment community acquisition within Northern/Central New Jersey in the past 20 months for KRE, the Bridgewater-based real estate investment and management company.KRE has investednearly $300 million in that time and acquired more than 1,500 rental units as part of a strategic initiative to grow the company’s portfolio of multifamily properties with value creation potential.

“At the heart of each of these deals was the opportunity to enhance the profitability of the newly-acquired property through capital improvements,” said Darin Raiken, Director of Acquisitions for KRE Group.

About KRE Group

Headquartered in Bridgewater, NJ, KRE Group is one of the largest privately held diversified real estate companies in New Jersey. It owns and manages more than 6,000,000 square feet of office, warehouse and retail space. It also has a multi-family portfolio which exceeds 9,000 existing apartments, with an additional 7,500 in various stages of approval and construction. For more information, visit the company’s website at www.thekregroup.com.

KRE Group, a family-owned firm with more than 50 years of experience, has been one of New Jersey’s most active real estate developers in recent years. The company recently opened two of the most iconic new-construction communities in the state, “Journal Squared”, which will ultimately comprise 1,838 luxury rental residences and 36,000 square feet of retail space in Jersey City’s historic Journal Square neighborhood, and “Hudson Lights”, a one million square foot development just two blocks from the George Washington Bridge in Fort Lee that features 276 luxury rental residences, amenities, restaurants, shops and an iPic movie theatre. KRE is also the developer of Grove Pointe, 225 Grand, and 18 Park in downtown Jersey City, and Madison Farms, a 100-acre mixed-use property in Bethlehem Township, Pa. that will ultimately include 837 luxury residences and 153,000 square feet of retail space.

KRE will also debut new residential buildings in Madison, NJ and Jersey City’s Hamilton Park neighborhood later this year. The company owns and manages more than 6 million square feet of office, warehouse and retail space.

About Goldman Sachs Asset Management (GSAM) Private Real Estate

Goldman Sachs Asset Management (GSAM) Private Real Estate focuses on investing across all major property types spanning the risk and return spectrum, sourcing opportunities in primary and secondary markets. The group employs an active management approach, seeking to drive returns for investors through asset management initiatives including renovating and rebranding assets, and implementing energy and operating efficiency programs to potentially realize cost savings. The group manages over $1.7 billion of real estate assets as of March 31, 2017 and is part of GSAM, one of the world’s leading investment managers with more than $1 trillion in AUS globally as of June 30, 2017.

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