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Alex. Brown Realty, Inc. and TreeTop Development Acquire Apartment Complex in Newark, New Jersey

Contact: Thomas R. Burton
410-547-3009
tom.burton@abrealty.com

Baltimore, MD (January 8, 2008) - Alex. Brown Realty, Inc. (ABR), a national real estate investment company, has entered into a joint venture with New-York based TreeTop Development to acquire Parkwood Place, a 293-unit apartment complex in Newark, New Jersey.  ABR Chesapeake Fund III, a value-added real estate investment fund sponsored by ABR, provided an equity commitment of $6.1 million to the venture.  Joel Mazur and Scott Assouline of Meridian Capital Group’s New York office arranged the debt and equity capital for the transaction.

The acquisition marks ABR’s first investment in Newark. “Newark is a viable, growing market,” commented Tom Burton, ABR’s vice-president and chief investment officer. “The city has seen a substantial amount of private and public investment in recent years – the new $375.0 million Prudential Center arena is a great example – and that trend looks to continue in the near future. That level of investment has undoubtedly impacted Newark’s economy.  As a result, we see a market with solid projected population growth and a diverse employment base.  We also see a market poised to benefit from the growth in Manhattan and other New York metropolitan area communities -- rising housing costs in these communities have pushed more residential into Newark and the surrounding areas.” 

Parkwood Place, which consists of seven, six-story, elevator-served buildings constructed in the late 1940s, is located in Newark’s North Ward neighborhood, adjacent to the North Ward Center and the Robert Treat Academy charter school.  Current vacancy for apartment units in the submarket is approximately 5% and many properties in the submarket are experiencing full occupancy.  Vacancy at Parkwood Place is currently less than 4%.

The joint venture intends to add value to the complex by implementing a concentrated, hands-on management approach and a $1.4 million property improvement plan that focuses on renovating interior units as tenancy rolls over, upgrading common areas, and completing key exterior improvements.  Both moves are expected to enable the joint venture to bring rental rates in line with current market conditions.  

“Parkwood Place is a solid investment that should generate strong returns to our investors,” commented John Prugh, ABR’s president and chief executive officer.  “We have strong existing cash flow, attractive debt financing in place, and the benefit of working with a local JV partner that has extensive experience in owning, managing, and redeveloping core, urban, residential assets.” 

Alex. Brown Realty, Inc.
(ABR) is a privately owned real estate investment manager organized in 1972 and headquartered in Baltimore, Maryland.   ABR co-invests with joint venture partners in a broad spectrum of property types located throughout the United States.  www.abrealty.com

TreeTop Development
(TreeTop) is a New York-based real estate investment firm formed in 2005 that focuses on acquiring, renovating, and repositioning apartment buildings in key urban centers throughout the metropolitan New York area.  www.treetopdev.com

Meridian Capital Group LLC
(Meridian) was founded in 1991 and is one of the nation’s largest real estate investment banking firms serving the multifamily and commercial real estate sectors. The company is based in New York City and has additional offices throughout the United States. Meridian finances transactions ranging from $500,000 to more than $500 million for multifamily, co-op, office, retail, hotel, healthcare, self-storage, industrial, and construction properties. Nationally, Meridian reported more than 2,500 transactions in 2006, totaling over $17 billion.

Archives:
2014:
ABR to Develop Marriott
  Residence Inn in
  Hillsboro, OR

ABR Sells Trophy Atlanta,
  Georgia Retail Center

ABR Sells Luxury Apartment
  Building in Brooklyn, NY


2013
ABR Acquires San Diego
  Industrial/Flex Portfolio
ABR Acquires Office Buildings   in Lakewood, Colorado
Sale of Crossing Place
  Apartments

ABR Acquires Milwaukee
  Industrial Portfolio

Robinson Joins ABR's
  Acquisition Team

Benvenuto Promoted to
  Acquisitions Officer

ABR Acquires Apartment   Community in Charlotte, North   Carolina
Alex. Brown Realty Announces   New Addition to Asset   Management and Acquisition   Teams
ABR to Develop Two Hotels in   Downtown Salt Lake City,
  Utah

ABR Acquires Business Park
  in Las Vegas, Nevada

ABR Acquires Washington, D.C.   Boutique Hotel
ABR Acquires Madison,
  Wisconsin Office Building

2012:
Alex. Brown Realty Closes ABR  Chesapeake Fund IV at $282  Million
ABR Acquires Boston   Flex/Industrial Facility

ABR to Develop Apartment
  Project in Brooklyn

ABR Acquires St. Louis Industrial  Office Building

ABR Announces New  
 Additions to  Asset
 Management  and Acquisition  Teams

ABR Acquires R&D/Flex Office  Buildings in Livermore, CA
ABR Acquires Student Housing in  College Station, TX
Acquisition and Sale of
 Indianapolis Distribution
 Center

ABR Acquires Multi-Family  Complex in Savannah
Shops Around Lenox Secures  Anchor Retail Tenant


2011:
ABR Acquires Medical Office  Buildings in Charlotte, NC

2010:
ABR Volunteers to Support
 Baltimore-area Kids

ABR Acquires Indianapolis, IN  Industrial Portfolio

2009:
ABR Acquires Manassas,
  VA Retail Center

ABR Acquires Retail Center
 Adjacent to Atlanta’s Lenox  Square Mall

ABR Acquires Medical Office  Building Greenville, SC

2008:
RiverCenter B-Tranche
  Acquisition

ABR Acquires Industurial Park   in  Suburban Chicago, IL
ABR Acquires Minneaplois, MN  Office Tower
ABR Acquires Medical Office   Building in Houston, TX
Parkwood Place Apartments   Acquisition

2007:
Collins Road Square Retail   Acquisition
ABR Acquires Retail Site
  in Annapolis, MD

ABR Acquires Reno, NV
  Office Building

Jacksonville Hotels
  Development

Water's Edge Corporate
  Campus Acquisition

Downtown Holiday Inn Atlanta
  Acquisition

Oak Portfolio Apartments   Acquisition
Kitley Industrial Park
  Acquisition

Telfair Hilton Garden Inn   Acquisition
Sale of Northridge Promenade
ABR Blends Old and New For   Healthy Profits

2006:
Pinnacle Park Acquisition
Nations Ford Acquisition
Atlanta Doubletree Acquisition
Brenneman Appointed   Acquisitions Officer
The Commons Acquisition
Okemos Apartments   Acquisition
Prunier Joins ABR's Asset   Management Team
Roswell Summit Acquisition
Liberty Station Acquisition

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