One23 at 123 44th St. in Union City — Courtesy: CBRE
By Joshua Burd
An out-of-state investor has paid more than $31 million for a newly built, 80-unit apartment building in Union City, CBRE said, touting the sale among several recent deals in Hudson County.
Brokers with the firm announced that Maya Capital, a New York City-based real estate group, acquired the property known as One23 for $31.25 million. Built in 2018, the building at 123 44th St. is one of the newest non-waterfront properties to come online in Hudson County and was 100 percent leased at the time of the sale.
CBRE’s Nat Gambuzza and Manny Sanghera represented the seller, noting that Hudson County has caught the attention of out-of-state buyers for existing and stabilized new apartment buildings. The duo touted the area’s demographics and the fact that renters in parts of the county can still realize significant discounts compared to New York City, Brooklyn, downtown Jersey City and Hoboken.
“We are seeing out of market investors buying newer constructed properties that meet the demands of today’s renter pool,” said Gambuzza, a senior vice president. “These investors see future upside in the Hudson County rental market, as the commute to New York City’s employment hubs becomes increasingly more convenient.”
The team also brokered the sale of 204 Grand St. in Hoboken, which was built in 2000 and acquired by Connecticut-based Spirit Investment Partners. The property is the oldest among three recently traded buildings, but is still newer than much of the area’s prewar housing stock.
The third sale took place at 5609 Jefferson St. in West New York, according to a news release. New York-based Abigail Associates purchased the five-year-old property, which is known as Jaclyn 32, and was drawn to the quality of construction, the need for limited capital reserves and modern amenities that have a positive impact on future rent growth.
“Each of these assets has varying levels of modern amenities that tenants are looking for,” Sanghera said. “Some have fitness centers and outdoor community areas, while others have modest amenities that are taken for granted when you compare them to older stock, including parking and in-unit washers and dryers.
“Investors see upside in rents when they compared to New York City,” he added. “Plus, substantial population growth is expected in Hudson County, which gives these properties further tailwind.”
In announcing the deals, Gambuzza touted a platform at CBRE that allows the brokers “to reach deep into the private capital pool of buyers while also accessing institutional buyers.” Gambuzza’s team in 2018 sold just under 1,000 apartment units for more than $170 million in volume.
“Tapping the local and out-of-area buyers is what draws the strongest competition for deals,” he said. “Properties that fall in-between the institutional and private sector is a niche our team has truly excelled at.”
