Elizabeth NJ

213 S Harrison St, East Orange, NJ 07018 East Orange 125-127 Fifth St, Elizabeth, NJ 07206 Elizabeth 303 3rd St, Elizabeth, NJ 07206 Elizabeth 262 Elmwood Ave, East Orange, NJ 07018 East Orange

Investment Details

Location Elizabeth, NJ
Asset Class C
Acquired Date April 2020
Number of Units 27
Purchase Price $1,320,000
Sale Date August 2023
Sale Amount $2,750,000

Location

The Elizabeth portfolio represented a strategic acquisition, secured at a relatively high cap rate, providing Nord Group with a strong foundation for value creation. Comprised of multiple residential properties in a desirable New Jersey market, the portfolio offered significant upside potential through targeted renovations and operational improvements.

One of the key elements of the plan was the renovation of approximately 30% of the apartments. These updates focused on modernizing the units with upgraded interiors and enhanced features that aligned with market demand. As a result of these renovations, the average rent increased by $250 per unit, contributing to a steady rise in rental income and improving the portfolio’s overall financial performance.

Alongside the physical upgrades, Nord Group implemented effective management practices that significantly improved tenant relations and operational efficiency. Through these efforts, collections were increased from 84% to an impressive 97%.

In terms of capital improvements, the replacement of one boiler and one roof further reduced maintenance costs and enhanced the long-term durability of the portfolio.

The overall result of the value-add strategy was a $95,000 increase in NOI, positioning the Elizabeth portfolio as a high-performing asset in Nord Group’s portfolio. Since the acquisition, investor demand in the Elizabeth market had grown significantly, driving cap rate compression and substantially increasing the asset’s value. This shift in market dynamics, combined with the portfolio’s improved financial performance, made the property an attractive option for investors, further solidifying its long-term value.