Jersey City, NJ — Jersey City, which often draws a close comparison to New York City’s most populous borough, is experiencing yet another wave of multi-family investment demand associated with its Hudson waterfront location and proximity to Manhattan, according to the brokerage professionals at Gebroe-Hammer Associates. Development is moving inland, tenants are migrating from New York City in search of a similar yet less expensive lifestyle and property appreciation is up approximately 7% in the past 12 months.
“Jersey City is right behind Brooklyn in terms of gentrification and its impact on the tenant demographic and accelerating property values and asking rents,” said Nicholas Nicolaou, senior vice president and the firm’s Hudson County market specialist. “The market and its existing multi-family housing stock have proven they can withstand virtually anything the economy or housing market might throw at it.”
Existing apartment buildings are ripe for repositioning, said Nicolaou, who recently arranged a four-building portfolio sale involving a total of 64 units throughout Jersey City. He represented the seller and procured the buyer of 74-76 Fairview Ave., 100 Duncan Ave., 485-487 Martin Luther King Dr. and 222 Jewett Ave (pictured). The total sale price was $7.56 million.
“The buyer was attracted to this portfolio because of the unit mix of one to three bedrooms as well as how close the buildings are to one another and major thoroughfares, which make them highly walkable and tenant friendly,” said Nicolaou.
Earlier this month, the brokerage team of Nicolaou and Eli Herskowitz, sales associate, also closed the $3.15 million sale of another 31 units located in the Heights area, predominantly comprised of two- and three-family residential homes and multi-family properties, many of which boast Victorian and Edwardian architecture.
Located at 516-529 Central Ave., the five-story building features 27 apartment units and 4 ground-floor commercial units. Bordered to the east by Palisade and Ogden avenues, the neighborhood offers scenic views of the Manhattan skyline. Central Ave. is a three-quarter mile long main street with more than 240 storefront businesses serving the Heights and neighboring communities.
“Gentrification has extended inland to Jersey City Heights due to two factors – its affordability and range of transportation options,” added Nicolaou. The light rail elevator at Congress Street connects to the 9th Street/Congress Street Station along the Hudson-Bergen Light Rail. Midtown Manhattan is minutes away via bus, train and ferry service.
Nicolaou also orchestrated the $1.55 million, two-building sale of 37-39 Bleecker St., and 37 Paterson St., comprised of 11 units and 4 units/4 garages, respectively.
Gebroe-Hammer is one of the most active multi-family investment sales brokerage firms within the New Jersey/Philadelphia/New York State corridor. The firm’s brokerage activities concentrate on suburban and urban high-rise and garden-apartment properties throughout the Northeast and nationally. Gebroe-Hammer also markets mixed-use and free-standing office and retail properties.