PALISADES PARK, NJ – Madison House, a 48-unit luxury rental building here has been sold to a privately-held Manhattan real estate firm for $16.05 million. Cushman & Wakefield orchestrated the deal.
The sale price factors out to nearly $334,375 per unit. C&W’s Brian Whitmer said there were several developers interested in converting the building to condominiums among the bidders.
Blumberg & Freilich Equities, together with investor L3C Partners, LLC, acquired the property at a bankruptcy sale in 2011 and completed construction of the building. Following a rapid rent-up, BFE concluded it was time to sell. ”We thought it was an opportune moment to bring a stabilized, maturing and opportunistically acquired multi-family property to a hot market,” said Ted Silverman of BFE.
C&W’s Metropolitan Area Capital Markets Group team of Andrew Merin, David Bernhaut, Gary Gabriel, Whitmer, and Ryan Dowd represented the seller. The capital markets team worked with John Alascio of C&W’s Equity, Debt and Structured Finance Group to arrange financing for the buyer.
“This opportunity attracted a great deal of interest from both multi-family investors and condominium converters,” said Whitmer. “It is encouraging to see that segment of the market start to make a comeback.”
Completed in 2011, the community has condominium-quality features such as granite countertops, stainless steel appliances, hardwood floors, and in-unit washers and dryers. The property was 96% occupied at closing.
The units are a mix of one- and two- bedrooms, averaging 1,049 square feet. Madison House has a two-level parking deck, and 2,400 square feet of street level retail.
”Because this is a recently constructed luxury community in a borough whose residential stock averages 60 years old, this offering was particularly attractive for potential investors due to being able to offer a differentiated and attractive product,” said Whitmer.
“This building is also unique in size and scale because of the difficulty in assembling land parcels in mature, infill markets such as Palisades Park,” he said. Whitmer cited the high-barrier-to-entry for developers of market-rate, non-age-restricted rental projects.
The Madison House is situated about five minutes from New York City via the George Washington Bridge and two miles from a ferry terminal.