CBRE on April 9 announced it arranged six sales transactions, comprised of multifamily assets and a residential development site, totaling nearly $42 million in the first quarter of 2021.
The firm’s investment sales team comprised of Nat Gambuzza, Trevor Fiebel, Spencer Beriont and Tim Blashford represented the sellers and procured the buyers in the transactions.
“Multifamily demand throughout the state has shown its resilience coming out of the depths of the pandemic,” said Gambuzza. “Overall, rent collections have remained strong, vacancies have been minimal, and rents have increased with the surge of new residents coming to New Jersey from New York.”
Among the transactions arranged was the $4.65 million sale of a development site at 803 South Ave. in Plainfield. The asset consists of a 1.36-acre site with a 30-year PILOT, along with Preliminary and Final Site Plan Approval to construct 104 apartment units and 870 square feet of commercial space. The fully amenitized project will stand out among the new construction in the area providing its residents with a magnificent 8,900 square feet of outdoor amenity space with three separate seating areas and a grilling station, a club room, fitness center, and covered garage parking.
According to Fiebel, “The offering brought in huge demand with multiple bids from both local and regional firms, allowing the sale to be arranged within 30 days from marketing launch.”
The team also completed the $1.81 million sale of Reina Apartments at 1425 Saint George Ave. in Roselle. The 17-unit garden-style building was constructed in the 1960s with central utilities. The property features average rents in the $900-per-unit range, presenting a value-add opportunity through apartment renovations. The transaction posed unique hurdles with limited due diligence and required capital improvements that the CBRE team was able to overcome by leveraging the future value potential of the asset.
Also in Plainfield, the team arranged the $4.12 million sale of 607-611 Madison Ave. Apartments. The four-story walk-up was constructed in the 1930s, consisting mainly of studio apartments with average rents under $875 per unit. The buyer was attracted to the value-add aspect of the opportunity with below market rents in a municipality with no adopted rent control ordinance.
Gambuzza and Beriont were responsible for the $9.7 million sale of a 58-unit residential property at 155-185 Gold St. in North Arlington. The property is a garden-style building featuring 28 one-bedroom and 30 two-bedroom apartments. With below market rents in place, this deal presented the investor multiple value-add opportunities through unit turnover, renovations, and an enhancement to curb appeal.
Gambuzza and Blashford arranged the $2.75 million sale of 130 N. Walnut St., a 21-unit multifamily property in East Orange. The garden-style building features studios, one and two-bedroom apartments at below market rents. The buyer was attracted to the value-add aspect of this deal in addition to adding economies of scale to nearby properties it owns and operates.
Finally, CBRE arranged the sale of a 174-unit residential portfolio in Gloucester County for an undisclosed price. The property consisted of apartments and eight commercial units. The buyer on this transaction was attracted to the higher yield and scale available by picking up a portfolio with assets that are all located within minutes of each other.