Cushman & Wakefield announced Monday the $49 million sale of The Pennington, a 147-unit multifamily community located at 211 Pennington Avenue. Local investment firm P3 Properties acquired the asset from The Birch Group, marking a strategic expansion in their home market of Northern New Jersey.
The transaction highlights the robust demand for transit-oriented, value-add residential assets in Passaic County, a submarket characterized by high barriers to entry and supply constraints.
Completed in 2024 as an adaptive reuse project, The Pennington spans 3.6 acres and occupies a full city block. The acquisition includes significant “value-creation” opportunities that P3 Properties plans to activate in the near term:
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The South Tower: A fully vacant 60,000-square-foot tower ready for development.
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Commercial Spaces: Two large commercial units currently in the planning and activation pipeline.
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Scale: The asset represents one of the largest full-block multifamily footprints in the city.
“The Pennington represented a rare opportunity… a scale and footprint that simply cannot be replicated today,” Harvey Rosenblatt, founder of P3 Properties said. “As a local owner with deep roots in this community, we are uniquely positioned to approach this opportunity with patience and conviction.”
Cushman & Wakefield’s Equity, Debt & Structured Finance (EDSF) team arranged $45.9 million in financing for the acquisition and planned capital improvements. The loan, provided by Prime Finance, features a full-term interest-only structure.
Niko Nicolaou, vice chairman at Cushman & Wakefield, noted that Passaic County remains one of the region’s strongest submarkets. “This transaction underscores continued investor appetite for well-located, transit-oriented assets offering both durable cash flow and meaningful future value creation,” Nicolaou stated.
Located in the Passaic Park neighborhood, The Pennington offers a 30-minute commute to New York City via the nearby Passaic Train Station. The community features:
- Modern Units: Average size of 968 square feet with contemporary finishes.
- Amenities: Two fitness centers, on-site parking, and controlled-access security.
- Tax Incentives: The property benefits from a long-term PILOT (Payment In Lieu of Taxes) agreement, enhancing its long-term financial stability.
The deal was facilitated by Cushman & Wakefield’s Northeast Multifamily Advisory Group and EDSF teams, representing both the buyer and the seller in the negotiations.
