Gebroe-Hammer Associates Executive Vice President Niko Nicolaou on April 8 said the $25 million sale of 125 Magnolia at Journal Square set a new multifamily benchmark for Jersey City’s upmarket neighborhood in the elevatored/pre-war apartment building category.
Nicolaou, who exclusively represented the seller, Excelsior Equities, and its principals Andrew Miller and Jacob Schulder, is the firm’s Hudson County/North Jersey Metro market specialist. He also procured the buyer, Spring Management, in the transaction. The mortgage broker was Brad Domenico of Progress Capital.
The multi-use asset is located between West Street and Summit Avenue and positioned adjacent to the Journal Square PATH Plaza. Lined with five ground-floor retail units, the five-story building has 94 residential units featuring an array of market-unique studio, one- and two-bedroom floorplans. It was originally built in 1929.
“In just the past few years, widespread neighborhood renewal has been sparked by a wave of development surrounding the most prominent neighborhood anchor – the Journal Square PATH Center,” said Nicolaou, who noted the transaction closed at a 4.5% cap rate and a $252,500 per-unit price. “This property posed an extremely rare value-add Journal Square acquisition opportunity in one of the most walkable and connected neighborhoods in the nation.”
According to Nicolaou, 125 Magnolia presents new ownership with the opportunity to update unrenovated units with at-market finishes. “This building features old-world charm – complete with brick feature walls in select units – and renovated units with modern features such as stainless-steel appliances, subway-tiled baths and plank-style hardwood flooring,” he said.
Located in the heart of Jersey City, Journal Square is a primary business district, residential area and transportation hub. The “square” itself is at the intersection of Kennedy Boulevard and Bergen Avenue while the broader area extends to and includes Bergen Square, McGinley Square, India Square, the Five Corners and parts of the Marion Section.