JERSEY CITY-The recent closing of three multifamily building sales totaling $12.5-million in Hudson County is a sign that New York City’s “sixth borough” remains an investment target, says Gebroe Hammer Associates in an exclusive GlobeSt.com interview.
Recently, the firm closed the $7 million sale of 171-181 Erie St., a 45-unit all-brick building in Jersey City, the $3 million sale of 712 Adams St., a five-story, 21-unit all-brick building in Hoboken; and an 80-unit apartment complex in Bayonne for $2.55 million. Both the Jersey City and Hoboken deals were off-market transactions that were on line for 45 and 90 days, respectively. The Bayonne property was an off-market transaction where a bid was made and accepted in literally 24 hours, says Nicholas Nicolaou, a sales associate at Gebroe-Hammer.
“Certain areas like Downtown Jersey City are yielding above-average per-unit prices,” Nicolaou tells GlobeSt.com. “The Erie Street property, which is a converted school near the Holland Tunnel, sold for $155,000 per unit, significantly higher than the average $50,000 to $60,000 per unit in other parts of the city.”
The result is that prices are holding. LoopNet current lists some 139 multifamily properties of various sizes and classes on the market in Hudson County, at prices ranging from $335,000 to $23.5 million.
Though Hudson is one of the smallest counties in the New Jersey, it is also one of the most densely populated. Occupancy thus remains high in apartment buildings in the area, which benefits from easy access to New York City. Thus, a number of Class B and Class C buildings are coming onto the market.
“Multi-family trading activity county-wide is steady for two reasons: Firstly, proximity to New York at lower rents feeds the strong occupancy rates that are so attractive to investors,” Nicolaou says. “Secondly, there is such a high density of existing apartment buildings in an area that was never built as single-family home neighborhoods. Moreover, new construction, with its associated high costs, in a tough lending environment, is virtually non-existent.”
Want to continue reading?
Become a Free ALM Digital Reader.
Once you are an ALM Digital Member, you’ll receive:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
*May exclude premium content© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
