2-8 Chadwick St. in Paterson — Courtesy: The Kislak Co. Inc.
By Joshua Burd
A development and investment firm has sold a four-building, 34-unit apartment portfolio in Paterson for nearly $4.4 million, in a newly announced deal by The Kislak Co. Inc.
The brokerage represented the seller, Levi Kelman of Blue Onyx Cos., in marketing the value-add properties at 2-8 Chadwick St., 11-13 Washington St., 498 East 23rd St. and 500 East 23rd St. An undisclosed buyer paid $4.36 million for the portfolio.
“There continues to be strong demand for value-add multifamily opportunities in northern New Jersey, and this demand has strengthened throughout the pandemic,” said Kislak Vice President Davis Briones, who brokered the transaction. “We led a bidding process that resulted in a non-contingent deal for the seller. The strength of the rental market in Paterson and low interest rates were also a factor with pricing, enabling the properties to trade within a low pre-pandemic cap rate range.
“Given the value-add opportunity, the purchaser intends to increase net operating income by completing individual unit upgrades and increasing rents.”
In a news release, the Woodbridge-based firm said the portfolio includes a mix of one- and two-bedroom units. Occupancy in the buildings was between 95 and 97 percent at the time of the sale.
