PATERSON, NJ–This onetime industrial hub city has been the focus of sustained revitalization efforts, and that has been paying off lately in the form of increased investment interest in multifamily properties here, according to Gebroe-Hammer Associates.
G-H has orchestrated the sale of more than 110 units during the past six months. The most recent transactions involve three properties with 49 total units situated in in the heart of the Passaic County seat.
The city is served directly by I-80 as well as routes 4, 19 and 20. Routes 46, 3, 17, 21, 208 and the Garden State Parkway also are nearby. Rich in history, the city touts a significant parks and recreation system.
“Paterson is a commuter hub where a substantial number of residents are renters. Both of these factors contributed toward strengthening occupancy levels citywide as well as piqued interest among multi-family investors,” says G-H’s Debbie Pomerantz, who engineered each of the recent transactions and is the firm’s area market specialist.
Once known as the “Silk City” and claiming a significant waterfall and park system, Paterson has direct access to I-80 and Routes 4, 19, and 20. Routes 46, 3, 17, 21, 208 and the Garden State Parkway are all nearby.
Record-low interest-rates and attractive prices make the Paterson’s multifamily properties “highly appealing” to investors, Pomerantz said.
In one of the recent trades, G-H exclusively represented the seller in a $600,000 short sale, in conjunction with the lender, a prominent New York bank. Pomerantz identified the buyer for the three-story, 27-unit building at 42-52 Essex St., which is set in a residential neighborhood close to shopping and transportation.
Also, Pomerantz exclusively represented the seller and procured the buyer in the $985,000 all-cash sale of 16 units at 58-60 17th Ave. That building includes a mix of nine one-bedroom and seven two-bedroom units. “The fully rented building is well managed and also is located in a quiet, residential area. The buyer recognized the long-term investment potential of this building and didn’t hesitate to add the property to his portfolio,” said Pomerantz.
Average rents for the one-bedroom units are about $775 at the 17th Avenue building, and about $900 for the two-bedrooms.
The third recent transaction was the sale of six units at 472 10th Ave for $100,000.
Previous multifamily sales in the six-month period include the note sale of a 46-unit, nine-building portfolio to a private investor on behalf of a prominent New York bank and the $1.05 million sale of 16 units at E. 26th Street.
In nearby Passaic, the brokerage team of Pomerantz and Sale Associate Nicholas Nicolaou also arranged the $4 million trade of Seville Apartments, a five-story, 46-unit midrise building, which was fully occupied at the time of sale.
Gebroe-Hammer Associates specializes in suburban and urban high-rise, mid-rise and garden-apartment properties throughout New Jersey, New York and Pennsylvania, including Philadelphia.
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