JERSEY CITY, NJ—Lakewood-based Capital Realty Associates orchestrated the $23.2 million sale of ten apartment buildings here in the Journal Square, McGinley and Greenville neighborhoods.
Ben Greenstein, president of Capital Realty, tells GlobeSt.com, "The new owner is absolutely counting on the redevelopment of Journal Square spilling over" to enhance the value of several of the properties, which are all rent-controlled.
The ten-building sale involving 309 units is the largest multi-family property sale in Hudson County so far this year.
Greenstein said the buyer and seller in the transaction asked that their identities not be disclosed. The buyer is a long-time multi-family real estate operator based in New Jersey, he said, and the seller - also New Jersey-based - is currently seeking another purchase opportunity.
The buildings traded are located on Gifford, Kensington, Van Reypen, Belmont, Clinton, Claremont and Bergen Avenues. The units are currently 98% occupied, but Greenstein said they were only about 65% occupied three years ago when the current seller acquired them.
“Following the purchase, the property underwent major renovations,” Greenstein said “The buyer plans to continue to upgrade the property and increase its value.”
The monthly rents for the apartments – which range in size from studios to three-bedrooms - range from $620 to $1,300.
These rents are lower-tier for Jersey City, which has added thousands of new luxury-level units in the past decade, with aggressive redevelopment.
In a long-awaited development, KRE will soon break ground at Journal Square for the first of three residential towers at Journal Square that will provide a total of 1,840 new rentals.
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