1101-1109 Palisades Ave. in Union City — Courtesy: Gebroe-Hammer Associates
By Joshua Burd
A private investor has acquired an 18-building, 487-unit multifamily portfolio in Hudson and Bergen counties, under a $75 million deal arranged by Gebroe-Hammer Associates.
The brokerage firm on Wednesday said it represented Madison Hill Properties in the sale of the properties, which include 419 apartments in Union City. The remaining units are in Lodi and Bergenfield.
Gebroe-Hammer Executive Vice President Nicholas Nicolaou represented both parties in the Hudson County portion of the transaction, while Executive Vice President Greg Pine did so in Bergen County.
In a separate announcement, Progress Capital said partner Brad Domenico negotiated a $60 million acquisition loan for the buyer, securing a 4.14 percent, seven-year fixed rate based on a 30-year amortization with two years interest only. John Darrow of RED Capital provided the financing.
Neither firm disclosed the addresses of the buildings, but touted the overall appeal of the apartment market in the two northern New Jersey counties.
“This portfolio posed an extremely diverse architectural, building and tenant demographic mix, from urban midrises within one of Hudson’s County’s most vibrant waterfront municipalities to low-rise and garden-style communities situated in the heart of commuter-friendly suburban towns — all just 13 miles apart and within a short distance to New York City,” Nicolaou said. “Collectively and as individual properties, each poses an exceptional acquisition for the buyer.”
The Union City properties include 196 one-bedroom units, 175 two-bedroom units and a combined 45 three- and four-bedroom units, respectively. Gebroe-Hammer said. The portfolio also includes three ground-floor retail units and on-site parking, garages and storage at certain locations.
“Combined, the portfolio has the potential to yield market-rate rent appreciation as well as additional value-add associated with implementation of modest-to-extensive capital improvements,” Nicolaou said, touting Union City’s proximity to the Lincoln Tunnel, mass transit and the area’s well-known shopping and recreation offerings.
The three central Bergen County buildings feature 68 total units in Lodi and Bergenfield, Gebroe-Hammer said. Located just 10 miles apart, the properties front Murray Hill Terrace and East Clinton Avenue in Bergenfield and South Main Street in Lodi.
“Each of these properties appeal to the area’s diverse tenant base, which ranges from hard-working families to established, highly educated business executives,” Nicolaou said. “Enhancing this portion of the portfolio’s appeal is its central locale within a well-established transit-friendly residential corridor and repositioning potential associated with area development.”