M&M brokers sale of Downtown Woodbridge 53 multifamily portfolio

Jessica Perry//July 29, 2022//

M&M brokers sale of Downtown Woodbridge 53 multifamily portfolio

Jessica Perry//July 29, 2022//

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Downtown Woodbridge 53 is a three-property multifamily portfolio located in Middlesex County's Woodbridge.
Downtown Woodbridge 53 is a three-property multifamily portfolio. – MARCUS & MILLICHAP

Marcus & Millichap arranged the sale of a portfolio of apartment complexes located in Middlesex County’s Woodbridge.

James McGuckin, regional manager for the firm’s New Jersey office, announced July 28 the sale of Downtown Woodbridge 53: a portfolio comprised of three separate apartment buildings totaling 53 units.

The properties are in proximity of each other, located at:

  • 501 Rahway Ave.
  • 490 Rahway Ave.
  • 20 Claire Ave.

Marcus & Millichap‘s Chez Eider and Jonathan Zamora marketed the properties exclusively on behalf of the private investor seller and also secured the buyer, a limited liability company. Financial terms were not disclosed.

“We ran a wide marketing campaign that attracted nine solid offers and closed at a higher price than the sellers’ expectations,” Eider said in a statement.

Before enlisting Marcus & Millichap, the firm said the Downtown Woodbridge 53 portfolio had been listed in the past by several other firms—complicating the assignment. On top of that, the package had also been under agreement multiple times under the previous listing firms.

Despite operating under more precarious economic conditions, Marcus & Millichap said it was able to structure a deal that will withstand the potential impact from ongoing market volatility through a mix of strong contract terms that included a significant amount of non-refundable deposit with minimal and limited due diligence.

“Our platform allowed us to fetch an out of market buyer who understood the value-add potential in the deal. The sellers did a lot of capital improvements which immediately paves the way for the buyer as units turn over to capture the upside in the deal,” Zamora said. “We continue to see a lot of urban capital flowing into the suburbs following demographic trends and less rent controlled markets. This deal serves as a great example of how our reach in the marketplace allows us to successfully market a property at a greater price for our sellers as others were unsuccessful.”

Woodbridge is in the midst of a transformation of sorts with redevelopment projects throughout its downtown. One new retailer, in particular, is drawing plenty of buzz to the area: LeGrande Coffee House, from beloved Rutgers alum Eric LeGrande. And residents are making the move to Woodbridge, as well, which boasts a train station and access to major roadways on top of its walkable townscape. Avenue & Green, a new property from Prism Capital Partners, and where LeGrande signed on as the first retail tenant, reached lease-up for its 232 units in just eight months.