ASBURY PARK, NJ–In what Gebroe-Hammer Associates investment managers say is an example of the deep interest in multifamily properties of all types in New Jersey, including lender-owned, the brokerage firm recently arranged two REO sales of apartment buildings in Asbury Park:
- A mid-rise building at 1700 Webb St. in the city’s redevelopment zone sold for $2.6 million.
- A smaller complex on Washington Avenue was re-acquired by a previous owner for $560,000.
Gebroe-Hammer’s brokerage team represented both sides in both REO transactions. The sellers were not identified, and neither were two separate buyers.
The 1700 Webb St. building has 39 units, and is fully occupied. “This property is strategically situated in Asbury Park’s redevelopment zone, just one block from the beach and Deal Lake,” says Steven Follman, a G-H sales associate and area market specialist. He said the buyer has plans to renovate and improve the property.
The 24-unit complex at 1239, 1251 and 1311 Washington Ave. has changed hands several times in the past several years since the current buyer originally sold it, says, executive vice-president David Oropeza, who handled this deal with Follman. “The private investor seized the opportunity to re-acquire the property for a purchase price of $560,000, which is almost half of what he sold it for a few years ago.” The building’s units are all one-bedrooms, and the site has parking.
Orepoza notes that average rents in the city range from $750 to $1,100 for a one-bedroom, depending upon proximity to the waterfront.
“Because non-performing assets are sold at a discount in ‘as-is, where is’ condition, experienced investors often implement an effective, efficient property management program and/or rehabilitation initiative that allows them to enhance the long-term performance of the asset to ultimately realize a significant return on their initial investment.” adds Ken Uranowitz, G-H managing director.
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