130-132 North 3rd St. in Paterson — Courtesy: Gebroe-Hammer Associates
By Joshua Burd
An investor has paid $17 million for a nine-building, 133-unit apartment portfolio in Paterson and Passaic, in a transaction arranged by Gebroe-Hammer Associates.
The brokerage firm said the portfolio, which it sold on behalf of Golden Equities LLC, includes eight properties that are within two miles of one another. The Paterson buildings consist of 99-101 Belmont Ave., 113 Godwin Ave., 51-57 Park Ave., 120-128 Park Ave. and 130-132 North 3rd St., while the Passaic properties are located at 102-104 Beech St., 104-106 Beech St. and 3 Lucille Place.
It’s now primed for value-add upgrades by the undisclosed buyer.
“The Silk City Portfolio — aptly named for the area’s once-high concentration of silk mills — presents new ownership with the key property management advantage of proximity,” said Debbie Pomerantz, a senior vice president with Gebroe-Hammer. “This also is extremely favorable for realizing portfolio-wide property repositioning through value-add capital improvements.”
The Livingston-based firm said the buildings, which date back to the early 20th century, comprise a mix of studio and one-, two-, three- and four-bedroom layouts. Potential areas for value-add enhancements include individual units, common areas and the exteriors.
“Over the short and long term, these initiatives will boost property and rent appreciation values,” Pomerantz said, adding that Paterson and Passaic have evolved in recent years from their industrial roots. Both are now drawing outside investment that could help revitalize their urban cores, thanks in part to their proximity to Midtown Manhattan.
Properties within the portfolio are located along or within a short walk of NJ Transit bus routes originating at Broadway Terminal and Passaic Terminal, respectively, with rail service at Paterson Station and Passaic Park Station, according to a news release. Both are served by NJ Transit’s Main Line to Hoboken Terminal and Secaucus Junction connecting to New York Penn Station and Newark Liberty International Airport.
“Supply of for-sale and for-rent product in the Paterson and Passaic submarkets has been and continues to be very tight,” Pomerantz said. “As a result, properties of all calibers — especially those with inherent value-add potential — are garnering highly competitive sale prices.”