With a convenient location in its Journal Square neighborhood, a four-story multifamily property in Jersey City was recently sold.
The Kislak Co. Inc. announced the sale of 319 Summit Ave. in the Hudson County city for $3.85 million July 5.
Vice President Davis Briones marketed the assignment on an exclusive basis and procured the buyer, 319 Summit LLC. The seller of the property was not disclosed.
Built in 1920, according to Kislak, 319 Summit Ave. measures 25,000 square feet and offers 21 units, mostly with below market-rate rents. The brick building offers a mix of 15 one-bedroom and six two-bedroom units. Three owner-occupied, two bedroom units at the property will be considered market-rate units upon their vacancy, Kislak said, in line with Jersey City rent control regulations. The firm added that future capital improvements offer a value-add opportunity to increase rents to market rates.
“There is still strong demand for value-add multifamily properties in Hudson County despite rising interest rates and somewhat stagnant cap rates,” Briones, who joined Kislak in 2014, said in a statement. “This was sub-5% cap rate deal with a 30% property vacancy and the purchaser used a private lender.”
According to the Woodbridge-based commercial real estate brokerage, local organizations are engaged in a redevelopment plan for the area that 319 Summit Ave. is located in to upgrade older buildings and bring in new businesses, housing and entertainment options. In the middle of June, Kushner celebrated the start to a transformative project in Journal Square: a nearly $1 billion, 2 million-square-foot mixed-use development that will include two, 64-story glass towers offering views of the Statue of Liberty, Ellis Island and downtown New York City.i