SAGE Investment Real Estate Advisors continued its strong start in North Jersey as it announced its third recent multifamily trade, with the $4.2 million sale of 105 Grove St., in the Elmora section of Elizabeth.
Steve Tragash, firm co-founder and partner, exclusively represented the private individual seller and procured the buyer, a private investor.
SAGE has recorded sales exceeding $40 million and involving more than 114 Class A and classic-value-add units across Morris, Bergen and Union counties since establishing its Morristown-based firm less than six months ago. The firm’s client base includes institutional-investment and private-equity entities as well as privately owned companies, family offices and private individuals, the latter of which continue to account for a significant percentage of the state’s apartment-property landlords.
“The sale of this Elizabeth property in the low 5% cap range surprisingly follows the trend of aggressive pricing for value-add offerings,” Tragash said. “The flipside of this is that fully stabilized properties — with less upside — are responding more sensitively to interest rates with cap rates corresponding closer to mortgage rates. For properties that fall into this category, we are working closely with these clients to contemplate whether it makes sense to sell now or wait. While this approach may be somewhat atypical to the traditional broker/owner relationship, our approach is to understand our clients’ businesses holistically and capitalize on market timing.”
Constructed in 1927 and fully occupied at the time of sale, 105 Grove St. is uniquely positioned as an all-one-bedroom, 31-unit property with value-add potential where West End and West Jersey avenues converge. Located a 15-minute walk from New Jersey Transit’s Elizabeth Station, offering North Jersey Coast Line service, the property also offers proximity to an extensive roadway network. These routes include the New Jersey Turnpike, Garden State Parkway, Interstates 78 and 278 and U.S. Routes 1&9 and 22.
SAGE welcomes Eli Herskowitz as principal
As an extension of SAGE’s growth strategy, the firm also has welcomed experienced multifamily investment broker Eli Herskowitz as its newest principal. In this new role, he is responsible for spearheading SAGE’s transaction activities throughout Central Jersey while representing clients across New Jersey, New York state and the Philadelphia metropolitan statistical area. During the past 10 years, Herskowitz, a multifamily specialist experienced in complex and traditional deals, has recorded over $1 billion in real estate transactions.
“I am excited to be part of SAGE’s refreshing brokerage-firm concept, which will allow me to leverage my extensive market experience while advancing the firm’s authentic and nimble approach to doing business,” Herskowitz said. “SAGE’s benchmarks for exceptional, effective and efficient service mirror that of my own work ethic and I am pleased to join Steve and Greg, with whom I have worked for many years, and their entire team.”
