165 Units Located throughout Jersey City and Hoboken
JERSEY CITY/HOBOKEN, N.J., – September 12, 2014 – (RealEstateRama) — The $21 million sale of a four-property Hudson County multi-family portfolio, with units located throughout Jersey City and Hoboken, has been arranged by Gebroe-Hammer Associates of Livingston, N.J. Nicholas Nicolaou, vice president and the firm’s Hudson County market specialist, exclusively represented the seller, a long-time Gebroe-Hammer client, and the buyer, a private investment group with additional holdings throughout Hudson County.
More than 20 highly competitive offers were submitted for the 159 apartment-unit and six commercial-unit portfolio. “This was one of the most highly bid sales in Jersey City this year, thus far,” said Nicolaou. Following three rounds of aggressive bidding, the seller, who owned the property for more than 40 years and sought to reallocate proceeds from the sale to out-of-state investments, accepted the highest non-contingent offer.
The largest of the four buildings, 125-129 Magnolia Ave., in Jersey City, sold for $12.7 million. The mid-rise elevator building, located on the corner of Summit and Magnolia avenues in the heart of the Journal Square section, is within one block of the Journal Square PATH Station served by two trans-Hudson lines – the Journal Square/33rd Street and Newark/World Trade Center routes. Built in 1929, the well-maintained five-story all-brick exterior façade building is comprised of 93 apartment units fully occupied at the time of sale and five ground-floor retail spaces occupied by a bagel store, hair salon, nail salon, news/grocery store and wireless retailer.
Just next door, 115-117-119 Magnolia Ave. sold for $5.445 million. The 20 studio, 3 studio with loft, 20 one-bedroom and 2 one-bedroom with loft units feature exposed brick and renovated kitchens and bathrooms.
“The unit mix of these properties is rather unique, offering in-demand flexible layout options,” said Nicolaou. “Each of the units has recently undergone kitchen and bathroom renovations as well as the installation of new windows at 125 Magnolia Avenue. The new owner plans to implement capital improvements, in order to render the properties even more competitive and to leverage Jersey City’s gentrification associated with several new construction projects in the neighborhood.”
Among these projects is the newly opened Kennedy Lofts, the first non-waterfront high-end residential building added to Jersey City’s housing stock in several years. Progress on Journal Squared, a three-tower high-rise project located between Magnolia, Pavonia and Summit avenues, as well as preservation of the Jersey Journal’s former building at 30 Journal Square also are catalysts for the district’s rapid transformation.
The portfolio also encompasses seven units at 50 Stuyvesant Ave. in Jersey City, sold for $1.04 million, and 14 apartment units and one commercial unit at 328-332 Jackson Ave., in Hoboken, sold for $1.815 million. “All of these properties, which were fully occupied at the time of sale, are located in highly desirable neighborhoods that have a proven track-record for maintaining value and strong occupancy rates over time,” Nicolaou said.
Hudson County’s high concentration of multi-family properties and proximity to New York City render it one of the most active investment and rental markets in the region. Major mass transit terminuses include the Lincoln and Holland tunnels, ferry service to Manhattan, numerous local and regional bus routes and highway access to the New Jersey Turnpike Extension, I-78, Pulaski Skyway, U.S. Route 1/9, Route 139 and Route 440. “The ease with which people can move in this area for work and leisure make it very desirable for a diverse tenant base, from millennials to empty nesters,” added Nicolaou. “Markets like Hudson County, with a strong tenant base, low vacancy rates and increased rent potential, are a magnet for investors.”
Established in 1975, Gebroe-Hammer Associates specializes in suburban and urban high-rise, mid-rise and garden-apartment properties throughout New Jersey and Pennsylvania, including Philadelphia, as well as New York, throughout the Northeast and nationally. The firm also markets mixed-use and free-standing office and retail properties on behalf of a wide range of long-term clients, including private owners, REITS, private equity firms and other institutional investors. Widely recognized for its consistent sales performance, the firm is a 10-time CoStar Power Broker.