By Joshua Burd
An apartment complex in northwest Hoboken has hit the market for sale, with brokers touting its value-add potential in a neighborhood that is attracting new construction and rent growth.
Brokers with HFF are marketing the 240-unit property at 1130 Grand St. Known as The Rivington, the luxury complex is institutionally owned and managed and has recently undergone extensive renovations to the common areas, including a redesigned courtyard and a makeover of the fitness center and leasing office.
The existing owner has also upgraded nearly two-thirds of the apartments, HFF said, with some units undergoing layout modifications for a modernized configuration. But the firm said the remaining 83 units provide the upside for a would-be buyer.
“The remaining un-renovated units present an incredible proven value-add opportunity for investors,” HFF wrote in an offering memorandum. “The Rivington is one of the best-located, best-maintained luxury apartment communities in New Jersey, and has a proven value-add track record on which the investor can immediately capitalize.”
Investors have continued to show an appetite for such opportunities in Hoboken. Last winter, AEW Capital Management LP sold a 15-year-old, 128-unit complex about a block away from The Rivington for $77 million.
Its new owners, a partnership led by Advance Realty, have since launched a series of upgrades at the complex at 1300 Clinton St.
HFF also noted that rents in Hoboken have grown 22.7 percent since 2010, despite significant additions to supply. The yearly average vacancy rate in the city has not exceeded 5 percent for the past decade, while the population has grown 12.3 percent in the past eight years.
The brokerage team touted The Rivington’s access to mass transit to Manhattan and its proximity to supermarkets, the Washington Street retail corridor and the 5.4 acre Northwest Park. The complex features a single-story clubhouse at the corner of Grand Street and Adams Street, while each of the four six-story apartment buildings includes covered parking.
The HFF marketing team includes Jose Cruz, Kevin O’Hearn, Jordan Avanzato, Stephen Simonelli, Michael Oliver and Axel Anderson. Jon Mikula is heading the financing effort.