40-44 Fourth Street Apartments in Passaic — Courtesy: Gebroe-Hammer Associates
By Joshua Burd
A private investor has acquired a 33-unit apartment building in Passaic for $5.35 million, in a newly announced transaction by Gebroe-Hammer Associates.
Debbie Pomerantz, a senior vice president with the brokerage firm, represented GMX LLC in its disposition of 40-44 Fourth Street Apartments, which also includes one ground-floor retail unit. The deal comes nearly five years after the now-former owner purchased the property, going on to renovate several units with new windows and separate hot water tanks, while replacing the roof earlier this year.
“When a private investor approached the owner, a longtime client, with an offer that the owner deemed very attractive, the owner decided to consult with me, based on my longtime market knowledge and experience in different economic cycles,” said Pomerantz, who specializes in Passaic County and northern New Jersey. “As a result, I was able to quickly procure a new buyer — another long-time client — who made a superior offer that was immediately accepted, resulting in a streamlined transaction from start to finish.”
In a news release, Gebroe-Hammer noted that 40-44 Fourth Street Apartments sits near Passaic’s eastern boundary along the Passaic River. The firm added that, on an annualized basis through 2023 and 2024, asking and effective rents in the Passaic County submarket are expected to advance by 1.5 percent and 1.2 percent, respectively, citing data from Reis/Moody’s Analytics.
Additionally, properties predating the 1970s account for 67 percent of the apartment inventory and have a current occupancy rate of nearly 98 percent, Gebroe-Hammer said. Residents benefit from their access to the Passaic Bus Terminal, commuter jitney busses along Main Avenue and NJ Transit’s Passaic station, along with several business districts that are the target of local revitalization initiatives.
“Boasting a 98 percent renter population, this neighborhood is relatively historic, has a lot of character, offers outstanding walkability and has excellent mass transit for an easy bus commute to employment centers at nearby Newark-Liberty Airport (12 miles) as well as Manhattan (10 miles),” said Pomerantz, who noted that renter demand is above average for the neighborhood. “These characteristics and fundamentals signal sustained demand for multifamily and an upward market-rent trajectory — both of which appeal to investors across the board.”
