265-275 Beech St. in Hackensack — Courtesy: The Kislak Co. Inc.
By Joshua Burd
A private investor has sold a two-building, 78-unit apartment portfolio in Hackensack for $11.5 million, in a transaction arranged by The Kislak Co. Inc.
The brokerage firm said it represented both parties in the off-market sale of 265-275 Beech St., which are neighboring, five-story brick buildings a block from Hackensack University Medical Center. Each structure is home to 37 one-bedroom apartments, two two-bedroom apartments and on-site parking.
Kislak Vice President Andrew Scheinerman represented the seller, Prospect Avenue 1 LLC. Senior Vice President Robert Squires represented the buyer, Stonegate, a regional investment real estate owner, developer and longtime Kislak client.
“The seller engaged us to sell the property, which had been owned by the same family for many years, after we provided our opinion of value and demonstrated at which price we could sell it,” Scheinerman said.
The properties were fully occupied at the time of the closing, Kislak said. The brokerage team touted the buildings’ proximity to retail and commercial offerings, some of which are within walking distance, along with Interstate 80 and mass transit options.
“The offering presented a value-add opportunity for the purchaser who was eager to commence renovations in order to bring the units to market and increase rents,” Squires said. “Influenced by current local market trends where there is low inventory and high barriers to entry, the purchaser paid an aggressively low cap rate given the upside potential with rents following renovations.”
Oritani Bank provided financing, with attorneys Carmine Alampi and Marc Wohlgemuth representing the seller and buyer, respectively.
