New Bound Brook multifamily property sells for $22M

Bound Brook is picking up steam. In the fall, a transit-oriented development was announced that will bring 143 new residential units to the Somerset County municipality. Now, another new multifamily development has traded hands.

The Kislak Co. Inc. announced the sale of Mosaic on Main, located at 7-15 W. Main St. in Bound Brook, for $22 million on Jan. 4.

According to 2022 data from CoStar cited by Kislak, the sale price for the property – new construction that features 63 residential units and one retail space – represents the highest price paid for a multifamily property in Somerset County last year.

Executive Vice President Joni Sweetwood handled the assignment on behalf of the seller – West Main St. Urban Renewal LLC, an affiliate of longtime client Reynolds Asset Management – with Kislak marketing the property exclusively. The firm’s Robert Squires, senior vice president, procured the buyer – another longtime client, K&A Associates LLC.

According to Kislak, K&A Associates completed an I.R.C. Section 1031 like-kind exchange with the purchase.

M. Tuck Capital Associates arranged financing.

“This was an excellent opportunity in a desirable transit-oriented location and the transaction proceeded relatively smoothly given the motivation of the parties,” Sweetwood said in a statement. “The seller completed the development with the intention of selling it and the purchaser needed an exchange.”

According to Reynolds Asset Management’s website, the Bound Brook property was acquired by the Paramus-based firm in March 2019.

Mosaic on Main is a five-story elevator building located walking distance to the city’s train station, restaurants and shopping. The property, Kislak said, includes a 15-year PILOT agreement.

“The demand for new multifamily properties remains extremely strong,” Squires said. “In this case, we were able to successfully complete an exchange of a 1960s garden apartment complex into this brand-new Class A building. New buildings require much less maintenance and are generally less management intensive.”