LIVINGSTON, NJ-The completion of five multifamily investment sales for a total $7.3 million is the latest evidence that Northern New Jersey remains a strong market, says Gebroe-Hammer Associates, which represented the buyers and sellers in each of the transactions.
The deals cover 95 units in Bergen, Hudson and Union Counties: a $3.2 million sale of 25 units located at 34 Wisse St. in Lodi; the $1.5 million sale of 16 residential and two commercial units at 519 Central Ave. and the $855,000 disposition of 16 units at 96 Storms Ave. in Jersey City; the 1.6 million sale of a 23-unit building in Union City; and the $150,000 note sale of 13 distressed units at 1348 West Front St., in the City of Plainfield. Even so, deals aren’t always easy to do.
“The deals in general have always been the same. The harder thing is the banks,” says Nicholas Nicolau, sales associate and Hudson County market specialist, who finalized the Jersey City deals. “The deals in general are all hard to close.”
Cap rates for the Jersey City deals were 6.5%, slightly lower than similar trades earlier in the year, largely due to lower interest rates. Occupancy rates are very high in Jersey City in particular, given its proximity to Manhattan, Nicolau notes. And the sector’s appeal to investors is keeping the deal pipeline flowing, even for those owners who initially are reluctant.
“Long-term owners are selling because their kids don’t want to be in the business. Other owners don’t want to sell at all,” Nicolau says. “But I do have other deals in contract in Hudson County.
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