EDGEWATER, NJ-With both buyers and sellers finally becoming realistic about pricing, multifamily transactions have been taking off in Hudson County – with even some less-than-conventional deals taking place, says REMAX Commercial – Hudson Commercial Group.
With a number of long-term owners looking to cash out, and demand high, the firm has closed a number of deals with the county. “It’s been a great couple of years,” says Anthony Gomez, managing broker for REMAX Commercial - Hudson Commercial Group. The pace of this business has definitely been going up. The deals are getting repriced and banks are looking to unload stuff.”
Private owners are looking to cash out, and taking advantage of investors’ interest in property close to, but more affordable than, New York City. “In comparison to New York City’s boroughs, it’s still cheaper here to buy a similar deal to Brooklyn and Queens,” Gomez observes.
Other sellers bought at the top of the market, and must either refinance short-term notes or want to work on other projects. With interest rates low, buyers are clamoring for all opportunities.
The deals vary, Gomez noted. For example, a 24-unit project at 1215 New York Ave. in Union City, which sold for $3.5 million, was actually a deal with the bank to complete what the developer had intended as a condominium. Instead, a private investor is holding the property as a new construction rental, at an 8% cap rate.
“There is a lot of property on the sidelines, and people are looking for anything north of a 6.5 cap rate,” said Gomez, who represented both the buyer and the seller.
The $1.52 million acquisition of an 18-unit multifamily on 64th Street in West New York actually was the purchase of the LLC instead of the real estate to eliminate the seller’s prepayment penalty.
“Most people would be afraid of that,” notes Gomez, who represented both parties. “But it worked out for everybody.”
Some conventional deals also are taking place, including the $810,000 acquisition of a seven-unit building (three vacant) in Weehawken, where Gomez again represented both the buyer and seller.
Even new development is taking place. Gomez is working on a development of 90 to 110 units in the county, among other similar deals. “That will be Class A with a city view,” he says. It will be a trophy property.”
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