Mill Creek Residential Acquires The Peaks of Nanuet for $180M

John Jordan | November 2019

The Peaks of Nanuet

NANUET—Mill Creek Residential Trust of Boca Raton, FL and an unnamed partner have acquired the 504-unit The Peaks of Nanuet apartment community here in what is believed to be a record deal in Rockland County.

The firm purchased the property from a partnership of New York City-based Harbor Group International and Azure Partners. The deal was reportedly valued at $180 million, according to reports in the Rockland County Business Journal, which cited public records in its report.

JLL marketed the property exclusively on behalf of the seller and procured the financing for the deal on behalf of Mill Creek Residential Trust LLC and a partner, which purchased the asset free and clear of existing financing.

The 10-year, floating-rate acquisition loan was provided through Freddie Mac. The loan will be serviced by Holliday Fenoglio Fowler LP, a JLL company and a Freddie Mac Optigo℠ lender.

The Peaks of Nanuet consists 64 buildings set on 54 acres that comprise a mix of one-, two- and three-bedroom units averaging 1,208 square feet, with approximately 40% of homes also inclusive of lofts. Units feature nine-foot ceilings, intrusion alarms, separate dining rooms, spacious closets, full-sized washers and dryers, and patios or balconies. The transit-oriented property is located at 100 Avalon Gardens Drive less than a mile from the intersection of the Garden State Parkway, Interstate 287 and Palisades Interstate Parkway. The property was 95% occupied at closing.

The JLL Capital Markets team representing the seller included Jose Cruz, Michael Oliver, Kevin O’Hearn, Stephen Simonelli, Andrew Scandalios and Michael Kavanagh.

“The Peaks asset was highly sought after by both institutional and private buyers given the property’s location, surrounding demographics and renovation upside,” Cruz stated. “This sale marks the largest multi-housing trade in Rockland County to date.”

Mill Creek has since renamed the property Alister Nanuet. According to its website, the deal marks the firm’s first purchase in New York State. The firm has developed multiple properties in New York, including the 324-unit Modera Hudson Riverfront in Yonkers, which it sold in April 2019, according to the firm’s website. The property is now known as Apex Hudson Riverfront.

The JLL Capital Markets debt placement team representing the borrower in the loan transaction included Senior Managing Director Andy Scott and Directors Matthew Pizzolato and Scott Findlay.

Mill Creek is building its portfolio in Seattle, Portland, the San Francisco Bay area, Southern California, Denver, Dallas, Austin, Houston, South Florida, Tampa, Orlando, Atlanta, Washington, D.C., New Jersey, New York and Boston. As of June 30, 2018, the company’s portfolio comprises 74 communities representing over 20,250 apartment homes that are operating and/or under construction.

John Jordan
Editor, Real Estate In-Depth