HOBOKEN, NJ-AEW Capital Management acquired the Metropolitan, a 128-unit luxury apartment and retail property in this Hudson River waterfront city. The Boston-based real estate investment advisory firm is paying $37 million for the upscale property, a price tag that factors out to just under $290,000 per residential unit.

The seller of the Metropolitan was Clinton Street Apartments LLC, a local partnership group. The transaction was arranged by a team headed by Jose Cruz of Cushman & Wakefield’s Metropolitan Area Financial Services Group, East Rutherford, which represented the seller and procured the buyer. AEW Capital Management acquired the property on behalf of an institutional client, according to Cruz.

“The Metropolitan is a great property in Hoboken, which has emerged as one of the fastest growing communities in the tri-state area,” Cruz says. “Within this context, nearly two dozen bids resulted in one of the lowest cap rates ever achieved within this market.”

According to Cruz, the seller was looking to take advantage of the current market in which multifamily properties have become a real favorite among investors. The acquisition also represents AEW’s initial foray into this market. “Both parties achieved their goals in the transaction. Clinton Street Apartments got a great price for the building, while AEW Capital Management got a quality asset in a prime location that promises a significant short-term increase in value.”

Located at 1300 Clinton St. here, the Metropolitan is currently maintaining a 98% occupancy rate. The property’s 4,000-sf retail component is fully leased to four tenants, including Ganache, the upscale pastry chain.

Founded in the late 1980s by executive vice presidents Andrew Merin and David Bernhaut, Cushman & Wakefield’s Metropolitan Area FSG has generated more than $5 billion in sales transactions in the tri-state area’s suburbs in the past decade. For the past two years, the group has turned over more than $1 billion in transactions annually and is on path to hit that number again this year, according to Cruz.

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