Marcus & Millichap has brokered the sale of a 22-unit apartment portfolio in Paterson that includes 16 units at 773 East 19th St. and six units at 149 Warren St. (inset). — Courtesy: Marcus & Millichap
By Joshua Burd
A private investor has purchased a 22-unit apartment portfolio in Paterson for nearly $3 million, in a transaction arranged by Marcus & Millichap.
According to the brokerage team, the deal includes 16 units at 773 East 19th St. and another six at 149 Warren St. Both are less than 10 minutes by car from Interstate 80, providing easy access to the region’s highway network.
“Multifamily investors are still targeting markets like Paterson to break into or expand their existing portfolios because of the various investment opportunities available,” said Daniel Aviles, a first vice president for investments with Marcus & Millichap. “The traditional value-add investments are the most in-demand and least affected by the interest rate environment.
“Investors see the upside and future of the market and target properties that require interior renovations to increase cash flow and provide better housing options for a more discerning tenant base.”
Aviles worked alongside the firm’s Jed Matricaria and Michael Kossak to represent the seller and procure the buyer, a New Jersey-based LLC, in a deal valued at roughly $2.9 million. They noted that the portfolio’s overall unit mix includes 18 two-bedroom and four three-bedroom apartments.
“The most active multifamily players in today’s market are not the same investors we saw in the past few years,” said Matricaria, a senior associate with Marcus. “With tightening on the financing side along with differing investor sentiments in the market, it has never been more important to know the intricacies of a purchaser’s capital stack, what their investment strategy is, and their level of commitment to close. Our team is in tune with the market and generated 10 offers on this opportunity, resulting in a smooth close with the best price and terms from the most qualified buyer in the market.”
