319 Summit Ave. in Jersey City — Courtesy: The Kislak Co. Inc.
By Joshua Burd
An investor has purchased a 21-unit apartment building in Jersey City’s resurgent Journal Square neighborhood, according to a broker with The Kislak Co. Inc.
The buyer, listed as 319 Summit LLC, paid $3.85 million for the property at 319 Summit Ave. Kislak Vice President Davis Briones marketed the building on behalf of an undisclosed seller, noting that most of the units have below-market rents.
“There is still strong demand for value-add multifamily properties in Hudson County despite rising interest rates and somewhat stagnant cap rates,” said Briones, who also procured the buyer. He added that the building, which was 30 percent vacant, traded at a capitalization rate below 5 percent, while the buyer used a private lender.
Built in 1920, the four-story brick structure consists of 15 one-bedroom and six two-bedroom rentals. Three of the apartments are owner-occupied and will be considered market-rate once vacant, in accordance with municipal rent control regulations.
Kislak said the building’s new owner has the chance to increase rents to market rates with future renovations, capitalizing on a location near the Journal Square transit hub. The neighborhood, the onetime commercial hub of Jersey City, has also seen a wave of new development and investment in recent years.
