417-421 Irvington Ave. in Elizabeth — Courtesy: The Kislak Co. Inc.
By Joshua Burd
A multifamily owner has sold a two-building, 62-unit apartment portfolio in Elizabeth for $6.5 million, brokers with The Kislak Co. Inc. announced.
The firm on Tuesday said it represented both the seller, Prince Elizabeth Go LLC, and the private buyer in the off-market deal. The properties include a 34-unit building at 417-421 Irvington Ave. and a 28-unit building at 71-81 Prince St.
Kislak Senior Vice President Jeffrey Squires marketed the properties on behalf of the seller, while Sales Associate Michael Salomon represented the buyer.
“The sellers purchased the properties five years ago for ($3.8 million) intending to hold them long-term,” Squires said. “We brought them an offer for almost double what they paid, which compelled them to sell.”
The Irvington Avenue property is a well-maintained, two-and-a-half-story brick apartment building with on-site parking adjacent to the local fire department, Kislak said in a news release. The property includes two studios and 32 one-bedroom apartments, while the Prince Street building is a three-story brick structure that includes 28 one-bedroom units.
A private lender funded the transaction.
“The cap rate was in the low 5’s and because of the tight cash flow, conventional lenders hesitated to offer customary terms,” Squires said. “The purchaser ultimately arranged private financing so that we could move forward with a fast closing.”
Combined, the properties are at 90 percent occupancy. Kislak also noted that both properties are within a half-mile of the Elizabeth train station, which offers direct access to Manhattan, and close to local schools and shops in downtown Elizabeth.
“This sale further exemplifies the continued and increasing strength of the northern New Jersey multifamily sector in areas outside of New York City,” Salomon said. “The purchasers were eager to procced as there is still plenty of upside to be realized with the properties.”
