RAHWAY, NJ-The 136-unit River Place at Rahway has sold for $26.25 million, netting one of central New Jersey’s largest multi-family transactions this year, says Gebroe-Hammer Associates, which represented the buyer and seller, both private limited liability corporations.
The deal includes cash and the assumption of approximately $20 million in debt. The two-building River Place was built in 2005, and owned by a partnership that included the developer who wanted to monetize his investment, Joseph Brecher, executive VP of Gebroe-Hammer, tells GlobeSt.com in an exclusive interview. The complex is 99% occupied. “With today’s favorable environment for multifamily, if someone needs cash, this is perfect,” Brecher says.
The seller is a partnership that owns a number of multifamily projects in New Jersey and Pennsylvania. Also appealing was the transit-oriented development’s location, close to the Rahway train station. Approximately 80% of River Place’s residents commute to New York City.”
“It’s a block and a half to the train station, which has two lines that connect to Midtown Manhattan,” Brecher explains. “Rahway, always a solid working-class town, has revitalized its downtown with shopping and a performing arts center.”
River Place’s 60 one-bedroom units and 76 two-bedroom units, range from 859 square feet to 1,471 square feet of living space. The purchase price, which comes to nearly $200,000 per unit, is a rare Class A transaction, the company notes. And in fact, the demand is so high, and supply so low, that B- and C-rated properties are trading as well.
“Class B and C properties are trading very aggressively,” Brecher says. “People see multifamily projects are stable investments. Interest rates are at historic lows for multifamily.”
Legal counsel was provided by Lawrence F. Reilly, Esq., of Day Pitney LLP, of Parsippany, NJ, representing the seller, and Abe Rappaport, Esq., of Totowa, NJ, representing the buyer.
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