HACKENSACK, NJ-Marcus & Millichap Real Estate Investment Services has arranged sale of the Franklin Garden Apartments, a 45-unit rental complex built in 1968, to Hackensack Associates LP for $4.9 million

“The multifamily market in northern New Jersey is extremely hot, particularly Bergen County,” Thomas McConnell, associate director of the National Multi Housing Group in Marcus & Millichap’s New Jersey office, tells GlobeSt.com. McConnell and fellow associate director Kevin McCrann had the exclusive listing to market the Hackensack property for the seller, Franklin Apartments LLC, and also secured the buyer.

Hackensack Associates, LP, acquired the property at a 6% cap rate. “The sale price and the cap rate provide a testament to the continuing strong demand for multifamily in northern New Jersey,” says McConnell. “Both the buyers and sellers are reaping the awards of our low interest rate environment.”

The Franklin Garden Apartments is a fully-occupied complex of one-bedroom units averaging 600 square feet. Franklin Apartments LLC was the builder and manager of the property.

For newer multi-family properties in Bergen County, such as one that Marcus & Millichap is marketing in Mahwah right now, McConnell says demand is very intense. “They’re practically breaking down the door to get to these opportunities because of the low interest rate dynamics, which provide a compressed cap rate for the seller while awarding stronger cash on cash return to the buyer,” he says.

The Mahwah property is Norfolk Village, a 75-unit age- and income-restricted complex built in 1995 by K. Hovnanian. “I believe this asset will trade at a cap rate below 6%,” said the broker.

Marcus & Millichap is one of a number of national and state real estate firms to predict multifamily occupancy rates will continue to rise in New Jersey this year, with no danger of overbuilding of new product through 2013.