125 Magnolia Ave. in Jersey City — Courtesy: Gebroe-Hammer Associates
By Joshua Burd
An Ohio-based company has added to its New Jersey holdings with its recent purchase of a 94-unit apartment building in Jersey City, in a deal arranged by Gebroe-Hammer Associates.
The buyer, Spring Property Management, paid $25 million for the five-story property at 125 Magnolia Ave. Brokers with Gebroe-Hammer noted that the structure also includes five ground-floor retail units and sits within the historic Journal Square neighborhood, with a location that is adjacent to the PATH station and transportation hub.
Gebroe-Hammer Executive Vice President Niko Nicolaou represented the seller, Excelsior Equities, and its principals Andrew Miller and Jacob Schulder, according to a news release. Brad Domenico of Progress Capital sourced a $17.25 million acquisition loan.
“In just the past few years, widespread neighborhood renewal has been sparked by a wave of development surrounding the most prominent neighborhood anchor — the Journal Square PATH Center,” Nicolaou said. “This property posed an extremely rare value-add Journal Square acquisition opportunity in one of the most walkable and connected neighborhoods in the nation.”
The broker noted that the transaction closed at a 4.5 percent cap rate and a $252,500 per-unit price, setting a new benchmark for the elevator and pre-war apartment building category in Journal Square. Its new owner, which is based in Powell, Ohio, now has the opportunity to renovate units with at-market finishes.
The 92-year-old property includes studio, one-bedroom and two-bedroom floorplans.
“This building features old-world charm — complete with brick feature walls in select units — and renovated units with modern features such as stainless-steel appliances, subway-tiled baths and plank-style hardwood flooring,” Nicolaou said.
Gebroe-Hammer detailed the deal last week, highlighting recent redevelopment in Journal Square and the neighborhood’s mass transit and highway connectivity. The Magnolia Avenue property is between West Street and Summit Avenue, placing it in the heart of the area’s business district and new residential buildings.