The Kislak Co. Inc. on Tuesday said it recently sold a 21-unit multifamily property in Jersey City for $3.85 million.
Kislak marketed the property on an exclusive basis, with Vice President Davis Briones handling the assignment, and he also procured the purchaser, 319 Summit LLC.
Briones commented: “There is still strong demand for value-add multifamily properties in Hudson County despite rising interest rates and somewhat stagnant cap rates. This was a sub-5% cap rate deal with a 30% property vacancy and the purchaser used a private lender.”
Located at 319 Summit Ave., the 25,000-square-foot, four-story brick building consists mostly of below market-rate rentals — 15 one-bedroom and six two-bedroom units with three owner-occupied, two-bedroom units that, upon vacancy, are considered market-rate units consistent with municipal rent control regulations.
Built in 1920, the future capital improvements present a value-add opportunity to increase rents to market rates.
The property is conveniently located in the Journal Square section of Jersey City — a desirable residential area, business district and transportation hub in the city.
Local organizations, in cooperation with a redevelopment plan, are upgrading older buildings in the area and bringing in new businesses, condos and entertainment centers to the neighborhood.