The Metropolitan, located at 1300 Clinton St. and 1313 Grand St in Hoboken – Courtesy: HFF
By Joshua Burd
The owner of a two-building, 128-unit apartment complex in Hoboken has tapped HFF to sell the property, with brokers touting a “substantial value-add potential” in the state’s strongest rental submarket.
HFF said The Metropolitan, located at 1300 Clinton St. and 1313 Grand St., was built in 2000 and is 97 percent leased. The two buildings that make up the property each have four stories of residential space over one level of retail and parking, with a series of recently renovated amenities.
In its marketing materials, HFF said 56 of the units have recently renovated kitchens with granite countertops and stainless steel appliances. Those units have been renting for a premium over non-renovated apartments, but the firm said the entire complex is primed “for a higher level renovation program” that could result in substantial rent increases.
Average rents at The Metropolitan are currently priced around 15 percent below the competition in the immediate area, HFF said. The brokerage team added that the spread between the rents at The Metropolitan and the competition enables the next owner to “initiate an aggressive and extensive full-unit renovation program for significant rent increases and still achieve a robust return on cost while having rents below the market average.”
The building sits in the northwest section of Hoboken and is close to new apartment buildings that are set to open in late 2016, The Jordan and Harlow Hoboken, HFF said.
The HFF marketing team includes Jose Cruz, Andrew Scandalios, Kevin O’Hearn, Jordan Avanzato, Stephen Simonelli and Michael Oliver. Jon Mikula is heading the financing effort.