LIVINGSTON, NJ–Nicholas Nicolaou, area market specialist for Gebroe-Hammer, says that while the multifamily sector slowed down a bit after Hurricane Sandy, it has picked up once again in recent days. He adds that because many homeowners are awaiting damage assessments on their homes throughout New Jersey, there is high demand for rental housing in the state and particularly in Hudson County.
Nicolaou notes that the appetite for multifamily investment deals is high due to the strong demand for rentals as well as its solid returns in relation to the current volatility on Wall Street. “Multifamily investments in densely populated urban locales throughout Hudson County offer a level of certainty in Wall Street’s uncertain investment market,” Nicolaou says. “As a result, there’s notable momentum in trading activity as well as significant opportunities for rent growth, particularly when it comes to value-add opportunities.”
According to the US Census, the percentage of multi-unit buildings in Hudson County in 2010 was 83.7%, as compared to the 36% rate statewide. The homeownership rate for Hudson County in 2010 was 34.3%, compared to 66.9% for the entire state of New Jersey.
Recently Nicolaou exclusively represented the seller and identified the buyer in an off-market deal valued at $4.4-million that involved the sale of 63 units at 126-130-134 Corbin Ave in the Journal Square section of Jersey City.
“This transaction netted an aggressive 6% cap rate, which the experienced private investor was willing to pay because of the location and quality of the buildings,” he says. The buyer and seller in trade of the four-story property were not identified.
Gebroe-Hammer reports it has arranged $14.8 million in multi-family deals in Hudson County in the past six months. Nicolaou says that he is expecting a more than $15-million multifamily transaction he is working on to close by the end of this month. He would not provide any further details on the deal at press time.
In the past six months Nicolaou arranged four other Jersey City trades: a $1.9-million sale of 28 units at 11-13-15 Gardner Ave. in the McGinley Square neighborhood; a nearly $1.7-million transaction that involved 24 units sold at 186-188 South St.; a $1.5-million trade of 22 units, including three commercial units, at 3719 Kennedy Blvd.; and the 18-unit sale of 119-123 Roosevelt Ave. for $1.3 million.
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