Edison Lofts in West Orange NJ Sells for $131 Million

Edison's Old Battery Factory in West Orange Sells for $131 Million

Source: Richard Bell / Unsplash

A 334-unit luxury apartment complex built inside a former battery factory associated with Thomas Edison in West Orange has changed hands for $131 million. SYM Investments acquired Edison Lofts at 33 Ashland Ave. from Prism Capital Partners and its capital partners, a deal that works out to roughly $392,216 per unit.

The sale was reported by CoStar, which detailed the transaction. According to Connect CRE, the purchase was backed by a $91.7 million acquisition loan from New York Life Insurance Co., structured as a full-term interest-only facility that financed roughly 70% of the purchase price. Cushman & Wakefield's Equity, Debt & Structured Finance team arranged the financing, while a Cushman & Wakefield brokerage team consisting of Niko Nicolaou, Ryan Dowd, JP Hohl, Michael Guerra, Kelly Kellett and Alexandria Russo Ebers represented both the seller and the buyer in the deal.

Edison Lofts is actually made up of two distinct residential pieces, the same report notes: The Residences at Edison Lofts, a 300-unit conversion of the historic factory building, and The Mews at Edison Lofts, a separate 34-unit ground-up building constructed above nearly 19,000 square feet of retail space and a 630-space parking structure.

From Battery Plant to Rooftop Sky Lounge

The building at the heart of the complex has an industrial pedigree that predates almost every other residential conversion in Northern New Jersey. It was constructed in 1913 by inventor Thomas Edison for the Thomas Edison Storage Battery Company, according to background reported by Jersey Digs. Industrial operations at the site are part of its industrial history.

The building later underwent a residential conversion: Prism Capital Partners tapped Minno & Wasko Architects and Planners to lead a project completed in 2018, with ceiling heights of 14 to 16 feet and 10-foot replica replacement windows. The finished building also includes a 12,000-square-foot rooftop indoor/outdoor Sky Lounge with 360-degree views of the Manhattan skyline.

A Tax Deal With a Complicated History

The complex operates under a local Payment In Lieu Of Taxes agreement with West Orange. A broker quoted by Connect CRE cited a favorable tax PILOT and investor interest. The PILOT is part of the complex's local tax arrangement.

That arrangement hasn't been without friction locally. In 2021, West Orange entered a legal dispute with master developer Prism Capital Partners over stalled phases of the larger 21-acre Edison Village master plan surrounding the lofts, according to a report from Patch. The dispute ultimately ended in a settlement in which the township bought back undeveloped land around the site for $12.5 million, while Edison Lofts itself — the completed Phase 1 — remained in private ownership.