A rendering of 22 Sussex St., a new 88-unit apartment building in Hackensack that is on the market for sale — Courtesy: Meridian Capital Group
By Joshua Burd
A newly built, 88-unit apartment building has hit the market for sale in downtown Hackensack, where brokers are touting several key tax benefits for a would-be buyer.
Meridian Capital Group, through its Meridian Investment Sales division, announced that it was marketing the development at 22 Sussex St. The firm noted that the luxury building sits in a federally designated Opportunity Zone and will be delivered before the issuance of a temporary certificate of occupancy, with a 15-year payment in lieu of taxes agreement in place.
To that end, the building will provide predictable cash flow and substantial long-term tax benefits for a buyer, Meridian said, noting that Opportunity Zone investors will be able to qualify for the full tax savings by closing before it is leased to tenants. The brokers touted it as an ideal investment for Opportunity Zone buyers seeking immediate returns without incurring construction and regulatory risks.
Meridian Senior Executive Managing Director David Schechtman and managing directors Lipa Lieberman and Abie Kassin are representing the seller in the transaction.
“An Opportunity Zone-focused investor is the natural buyer for this asset given the tax savings available by purchasing before the TCO is received,” Schechtman said. “In addition, given the PILOT, which will be accretive to any buyer, we also expect investors who understand the sturdy fundamentals and value of the Hackensack market will also be bidders on this well-located and high-quality asset.”
Rising six stories, 22 Sussex includes units ranging from studio to two-bedroom apartments and 109 indoor parking spaces, Meridian said. Amenities include a fitness center, tenant lounge, roof deck and package room, while individual units will feature high-end finishes and appliances.
The property has frontage on Bergen and Sussex streets. In a news release, Meridian also touted Hackensack’s proximity to major employment hubs such as the Bergen County Courthouse and Hackensack University Medical Center, along with retail and entertainment options.