24-50 Summer St. in Passaic — Courtesy: CBRE
By Joshua Burd
A 101-unit garden apartment complex in Passaic has changed hands for more than $13 million, under a newly announced transaction by CBRE.
Brokers with the firm represented the seller of the property, 24-50 Summer St., in the deal with the undisclosed buyer. Located just off River Street, the complex is fully occupied at rents roughly 30 percent below market value.
CBRE’s Nat Gambuzza and Spencer Beriont completed the $13.1 million deal.
“The acquisition of this property presents new ownership with an excellent opportunity to own a quality, value-add asset in the high-barrier to entry market of Passaic County,” Beriont said. “The buyer understood our value-add projections and was willing to pay a record low 5.1 percent cap rate for the property.”
The brokerage team noted that 24-50 Summer St. includes 12 studio, 73 one-bedroom and 16 two-bedroom apartments.
“Passaic has been a hotbed of investment activity because of its centralized location and easy access to New York City,” Gambuzza said. “Landlords have flocked to Passaic to capture massive rental upside spurred on by high renter density. Many renters view Passaic as a more affordable option to rents in Bergen County and neighboring municipalities in Passaic County.”
