Gebroe-Hammer Associates Closes 10-Building Portfolio Sale To Record Largest Jersey City, N.J., Multi-Family Transaction Of 2010
306-Unit Portfolio Trades for $16.175 Million.
- Jersey City, NJ (1888PressRelease) January 07, 2011 - In the final weeks of 2010, Gebroe-Hammer Associates recorded the largest Jersey City multi-family transaction of the year with the sale of a 10-building, 306-unit portfolio in the city's sought-after Journal Square and Greenville districts. Ken Uranowitz, managing director, and Sales Associate Nicholas Nicolaou were named the exclusive brokers by the seller, Morningside Ridge LLC, and represented the buyer, a private local investor and long-time Gebroe-Hammer client.
The well-maintained properties, which boasted an overall occupancy rate of 93 percent at the time of the $16.175 million sale, include 150 and 154-156 Belmont Ave.; 546 Bergen Ave.; 201 Claremont Ave.; 164 Clinton Ave.; 9, 11-13 and 15-21 Gifford Ave.; 35 Kensington Ave.; and 58 Van Reypen St. The mid-rise buildings offer a mix of apartment layouts, ranging from studios to four-bedroom units. Each also is centrally located within popular residential neighborhoods near schools, transportation, shopping and major office centers.
"The high concentration of these properties, which are within blocks of each other, made this portfolio an attractive acquisition from an overall investment and property management perspective because of the opportunity to combine administrative and property supervision resources," said Nicolaou. "The buyer also plans to implement a comprehensive renovation/modernization project to realize the upside potential of each building by achieving more competitive market rates."
An important transportation terminus and waterfront distribution center, Jersey City is one of the nation's largest office space real estate markets that employs a strong professional and working-class demographic. Strategically located on the Hudson River across from Manhattan, Jersey City is favored among renters for its diversity and affordability, according to Gebroe-Hammer. The Livingston, N.J., firm reports average monthly rentals currently range from $750-$800 for a one-bedroom unit; $900-$1,000 for a two-bedroom unit; and $1,000-$1,200 for a three-bedroom unit.
"The sale of 10 buildings in a single transaction is extremely impressive because the majority of Jersey City apartment buildings are independently owned - often by families or private investors who have held the asset for decades - and typically trade on a one-off basis," said Uranowitz. "The bid/ask gap is tightening as demand continues to exceed supply of for-sale properties. Multi-family properties in urban, transit-oriented locations are the investment 'hypocenter' because this is where the highest velocity of trades have occurred and will continue to increase throughout the upcoming year. With several additional deals throughout Northern New Jersey in the pipeline, Gebroe-Hammer is kicking off the new year at a record pace."
Legal counsel was provided by Anthony Romano, Esq., of Connell Foley, and Richard Kelin, Esq., of Feinstein, Raiss, Kelin & Booker, LLC, on behalf of the seller and buyer, respectively. Elliot Treitel of Meridian Capital procured the financing on behalf of the buyer from a local regional bank.
Gebroe-Hammer Associates is the region's most experienced and respected commercial real estate brokerage firm specializing in multi-family, retail and office property investment sales. With a concentration on suburban and urban high-rise, mid-rise and garden-apartment properties, the firm also markets mixed-use and free-standing office and retail properties throughout New Jersey, New York and Pennsylvania.
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