Capital Realty Arranges Milestone $130M MF Portfolio Transaction in Bayonne/Union City
Setting a new benchmark in the Bayonne area, Capital Realty arranged the sale of 919 apartment units for an out-of-state seller for $130 million.
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.