Benjamin Greenstein, president of Capital Realty Associates, and 1084 Kennedy Blvd., Bayonne, NJ, one of the portfolio properties included in the transaction. (Photo composite)
UNION CITY/BAYONNE, NJ—Marking one of the largest multifamily deals in Bayonne and Union City based on the total sale price and the number of units exchanged in a single transaction, boutique brokerage Capital Realty Associates has arranged the disposition of 66 multifamily buildings consisting of 919 units in a $130 million sale. Capital Realty president Benjamin Greenstein exclusively represented the seller and procured the buyer, a private investor.
“The sheer volume of the Bayonne and Union City portfolio presented a challenge when trying to find the most suitable buyer,” says Greenstein. “A longstanding relationship with the seller developed into a confidence that Capital Realty would be best-suited to facilitate this complex transaction.”
“The buyer believes that we are still a distance from the apex of Hudson County's rent boom, and he was therefore eager to extend his foothold into this burgeoning market,” Greenstein says. With Hudson County recognized as home to the country's four most densely populated cities (Union City ranking second on the list), asking rents are expected to appreciate significantly in the area. “It was definitely a rare multifamily acquisition opportunity simply based on its size and highly strategic location,” says Steven Follman, vice president/sales manager at Capital Realty.
Nestled right across the Hudson River and less than five miles from Manhattan, Bayonne and Union City have been magnets for young professionals and creatives who appreciate the relatively inexpensive cost of living and vibrancy the communities offer.
“The metro's proximity to high-profile employers along with its impressive immediate access to mass and vehicle transit options are major bargaining chips when it comes to deciding where to live,” Greenstein says.
All the properties are less than a 35-minute drive from Manhattan, with Bayonne expecting to launch a Manhattan-bound ferry.
“The buyer was definitely drawn to the rent decontrol laws recently enacted in Bayonne and the low vacancy rates in Union City,” Greenstein says. “He views these properties as having significant value-add potential and plans to update the apartments upon vacancy.”
This transaction comes in the wake of Capital Realty's recent involvement in the sales of 600 units in Union City, Jersey City, West New York, and Bayonne that totaled more than $75 million.
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Steve Lubetkin
Steve Lubetkin is the New Jersey and Philadelphia editor for GlobeSt.com. He is currently filling in covering Chicago and Midwest markets until a new permanent editor is named. He previously filled in covering Atlanta. Steve’s journalism background includes print and broadcast reporting for NJ news organizations. His audio and video work for GlobeSt.com has been honored by the Garden State Journalists Association, and he has also been recognized for video by the New Jersey Chapter of the Society of Professional Journalists. He has produced audio podcasts on CRE topics for the NAR Commercial Division and the CCIM Institute. Steve has also served (from August 2017 to March 2018) as national broadcast news correspondent for CEOReport.com, a news website focused on practical advice for senior executives in small- and medium-sized companies. Steve also reports on-camera and covers conferences for NJSpotlight.com, a public policy news coverage website focused on New Jersey government and industry; and for clients of StateBroadcastNews.com, a division of The Lubetkin Media Companies LLC. Steve has been the computer columnist for the Jewish Community Voice of Southern New Jersey, since 1996. Steve is co-author, with Toronto-based podcasting pioneer Donna Papacosta, of the book, The Business of Podcasting: How to Take Your Podcasting Passion from the Personal to the Professional. You can email Steve at [email protected].
