The transformation of a property in Millburn that sold last year for $965,000 — 21% over asking — into a nearly $3 million luxury residence reflects a new paradigm taking hold in affluent communities across Essex County and North Jersey.
As the supply of new homes dwindles and home buyers demand more space in established markets, construction firms are increasingly eyeing existing homes for their potential replacement value.
Construction firm Vantage Builders LLC purchased the two-bedroom home at 7 Sunset Drive in February 2025 after outbidding over a dozen potential buyers. The firm tore down the existing home and, 18 months later, is nearing completion on the new home, which will encompass over 5,900 square feet.
The Saritte Harel team of Keller Williams Premier Properties, which orchestrated the sale of the property in 2025 and is marketing the new home, told Jersey Digs that construction firms have turned to this strategy due to a dearth of available land in municipalities capable of supporting high-end new construction.
Vantage Builders will deliver a six-bedroom, six-and-a-half-bathroom home with a two-car garage. The home will span two stories and sit on a 0.26-acre lot.
The exterior of the new home consists of Hardie shingles with board-and-batten siding, Azek trim, and Pella triple-paned windows. There is a covered patio and a second-floor balcony, both of which will offer an additional 350 square feet of outdoor living space.
The interior of the new home features a family room, a basement with nine-foot ceilings and a wet bar with a wine fridge, a kitchen with quartz countertops and Thermador appliances, and recessed LED lighting, to name a few.
The property’s living spaces will feature white oak flooring and lighting fixtures throughout the foyer, dining room, kitchen, and powder rooms. Each room features a fully built-out closet, while the home also features a mudroom with custom storage and a pantry with built-in cabinetry.
“Essex County is extremely attractive to both builders and end users,” Realtor Chrissy Schwartz told Jersey Digs. “Property prices are high enough to justify significant investment into a property, which makes it a very competitive market.”
Jersey Digs reported in March 2025 that the Saritte Harel team arranged a similar deal in Short Hills, where a 2,385-square-foot 1948 Cape Cod-style residence sold for over $620,000 above asking price in five days. The buyer of that property intended to tear down the existing home to make way for a larger and more modern property as well.
Although paying $965,000 for a property slated for demolition might seem like a significant risk, the purchase at that price point is actually a steal. A report from Zillow says the average home value in Millburn reached $1.3 million at the end of July, reflecting a nearly 10% year-over-year increase.
