BOGOTA, NJ—Landmark Development Company has sold a 48-unit multifamily property it originally developed in 1962 in Bogota, NJ. Landmark sold the garden-style apartment project to Real Estate Growth Advisors for a competitive 4.8 percent cap rate and a total price of $6.725 million.
"REGA plans to execute a significant repositioning strategy in order to take advantage of the strong location and quality of the underlying asset," says REGA principal Jason Bilanin.
Hasbrouck Heights-based Redwood Realty Advisors handled the transaction.
"This transaction signifies continued buyer demand for older work force stock," Thomas McConnell, CCIM, managing partner at Redwood Realty tells GlobeSt.com exclusively. "The project traded at a sub 5 cap which proves the appetite for older product is alive and well. As long as there is upside in rents you will see compressed cap rates in the short to midterm."
McConnell sees two main concerns on the 2016 horizon in the multifamily market: rising property taxes in New Jersey that will lower the NOI on deals, and the possibility that the bullish outlook for the multifamily asset class will lead to overbuilding in some markets.
"It appears the majority of "renters by choice" want to live in urban markets with easy access to mass transit," he says. "I believe developers will begin to build smaller units to keep the units affordable."
In addition to McConnell and Kevin McCrann, Redwood's other managing partner, the Redwood team on the transaction included Michael Scrima and Matthew Sandelands, investment associates.
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Steve Lubetkin
Steve Lubetkin is the New Jersey and Philadelphia editor for GlobeSt.com. He is currently filling in covering Chicago and Midwest markets until a new permanent editor is named. He previously filled in covering Atlanta. Steve’s journalism background includes print and broadcast reporting for NJ news organizations. His audio and video work for GlobeSt.com has been honored by the Garden State Journalists Association, and he has also been recognized for video by the New Jersey Chapter of the Society of Professional Journalists. He has produced audio podcasts on CRE topics for the NAR Commercial Division and the CCIM Institute. Steve has also served (from August 2017 to March 2018) as national broadcast news correspondent for CEOReport.com, a news website focused on practical advice for senior executives in small- and medium-sized companies. Steve also reports on-camera and covers conferences for NJSpotlight.com, a public policy news coverage website focused on New Jersey government and industry; and for clients of StateBroadcastNews.com, a division of The Lubetkin Media Companies LLC. Steve has been the computer columnist for the Jewish Community Voice of Southern New Jersey, since 1996. Steve is co-author, with Toronto-based podcasting pioneer Donna Papacosta, of the book, The Business of Podcasting: How to Take Your Podcasting Passion from the Personal to the Professional. You can email Steve at [email protected].
