(Save the date: RealShare New Jersey comes to the Hyatt Regency, New Brunswick, NJ, September 19.)
PATERSON, NJ–The Kislak Co. has managed the sale of a 15-unit residential building with ground-floor retail space on Paterson’s Main Street to an investor buying the property with bankruptcy court approval. The buyer paid $2.11 million in an all-cash transaction.
Sales associate Joseph Keenan represented both parties in the transaction, and handled it from “inception to closing,” says Kislak president Robert Holland. Kislak, based in Woodbridge, had an exclusive listing agreement to sell the building with the approval of the New Jersey district of the United States Bankruptcy Court. The seller, whose mortgage was in default, had sought Chapter 11 protection.
Kislak declined to identify the seller or the buyer of the property, which was 100% occupied at time of sale.
“There were many hurdles to overcome throughout the transaction,” Keenan says. “We identified and implemented the steps needed to be taken with the mortgagee.”
Keenan says a reduction was negotiated for the accrued interest penalty on the defaulted mortgage, which made a “timely” closing possible.
He adds that finding a buyer was not a problem in today’s market. “Given the volatility of the stock market, the dismal returns offered by banks and record low interest rates, more and more investors are seeking the steady and reliable returns offered by commercial real estate, especially apartments,” says Keenan. “Well-maintained properties in good neighborhoods are selling for very aggressive prices.”
The Paterson property is situated in a strong apartment and retail market near the Clifton border, close to the Garden State Parkway and Routes 3 and 21, he noted. Its one, two- and three-bedroom units and five retail spaces had been well-maintained, according to Keenan.
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