Irondale At Wharton Project Predemolition Work Starts

Start generating passive income through real estate.

Own a piece of your favorite cities through diversified real estate investments in the country's top markets

*Terms and conditions apply. Visit Nada's website for more details.

Loading...
Loading...

With predemolition work on Ironton at Wharton starting this week, Diversified Properties LLC is a step closer to delivering 60 new condominiums to Morris County, New Jersey. 

Diversified Properties paid $2.25 million for the property in a deal that closed last week. The project cost per unit to develop the property is $325,000, bringing the total cost of the development to $19.5 million. 

Diversified Properties plans to use the RealtyMogul real estate investing platform to raise $5.9 million from investors, who will receive equity shares in the offering. The minimum investment in the project is $35,000 with a projected internal rate of return of 20%.

The project includes 54 market-rate units and six affordable housing units that are included in accordance with New Jersey law. Diversified Properties plans to complete construction and stabilize the offering through an aggressive lease-up. 

Diversified Properties projects a sale price of $385,000 per unit, which would represent a 5% capitalization rate at the end of the projected 2½-year hold period. 

Desirable Location

Morris County, one of the state’s most sought-after housing markets, is home to 33 Fortune 500 businesses and other major employers, including AT&T, Pfizer Inc., ExxonMobil, Novartis and St. Clare’s Health System. The submarket has a low vacancy rate of 2.1%, and landlords continue to see strong rent growth. 

While Morris County has a high cost of living — the median home price is $515,800 compared to the national average of $291,700 — niche.com still ranks the area No. 2 in terms of best counties to live in New Jersey. 

Founded in 2000, New Jersey-based Diversified Properties is a real estate development and management company that focuses on value-add and resale of commercial properties in the northeastern United States. It has experience with multifamily, office, self-storage and retail facilities. The company has developed real estate valued at more than $1.5 billion, and its portfolio has an estimated worth in excess of $500 million.

Photo: Courtesy of RealtyMogul

Market News and Data brought to you by Benzinga APIs
Comments
Loading...
Posted In: Real EstateAlternative investmentsoffering announcementRealtyMogul
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!

Loading...