WOODBRIDGE, N.J. – The Kislak Company, Inc. announced the recent sale of ten multifamily properties in northern New Jersey totaling more than $18 million.
Senior vice president Joni Sweetwood represented the seller in all transactions, which include:
- The $10 million sale of 126 units in Orange to a West Coast purchaser. This was a complicated sale given the remote purchaser and it was for the balance of a portfolio previously encumbered by a defeasance loan. Prior to closing, the real estate taxes on the property rose significantly. Sweetwood was able to resolve the issues given her strong existing relationship with both the purchaser and seller.
- The $4.15 million sale of 56 residential units in East Orange. This property had an excellent cap rate, at 7.8%.
- The $1.46 million sale of 32 residential units in East Orange. The purchaser was able to secure government financing, which is unusual for such a small project. “I had never seen government financing on such a small deal,” Sweetwood commented. “The closing took a long time due to the numerous inspections required for the financing.”
- The $1 million sale of 16 units in Orange, along with adjacent property that will be developed into 34 additional units. This was a complicated transaction because it required the removal of contaminated soil around the vacant property. Sweetwood was able to rely on existing contacts and help move the project forward.
The Northern New Jersey market is a microcosm of the national market, with strong performance and growth in the multifamily sector. Both volume and value of sales have been driven up by strong demand, much of which can be attributed to impressive job growth figures for the region.
Northern New Jersey added more than14,000 jobs in the year ending February 2015, and demand for rentals has been very high, with the consequence that rental rates have reached an all-time high in the area. According to Reis, the average rent for Northern New Jersey reached $1,618 per month at year-end 2014.
All of this translates to a very active period for multi-family property sales and development in the region. Northern New Jersey saw$1.3 billion in multifamily sales last year, and activity continues to be very brisk in 2015. New multi-family construction is particularly active in the area known as the Gold Coast and at stations along the transit route. Experts predict increased construction activity in towns like Woodbridge, Rahway, Bloomfield, Lyndhurst and Hackensack.
The recent transactions completed at Kislak are a good indicator of the region’s vigorous market. Long-term relationships and connections help the firm to quickly accommodate client needs and continue to show a high level of performance from staff. With more than 109 years of experience behind them, Kislak sets the standard for excellence in Tri-state real estate.
Since joining Kislak, Sweetwood has won numerous sales awards, including the Sima Kislak Jelin Salesperson of the Year award in 2010 and the company’s top production award 2011, 2012 and 2013. She has also been recognized as one of New Jersey’s Commercial Broker All Stars, as well as the Mid Atlantic Real Estate Journal’s Executive Women in Business.
Prior to joining Kislak, Sweetwood served as a vice president and REO portfolio manager for Midlantic Bank and The Howard Savings Bank.
About The Kislak Company, Inc.
The Kislak Company, Inc., which is headquartered in Woodbridge, New Jersey, is a leading commercial real estate brokerage consistently recognized for its investment sales success. Established in 1906, Kislak’s market leadership position and longevity are due to its ability to offer clients a personalized, hands-on approach, coupled with the unrivaled expertise of its long-tenured team of professionals. Kislak’s prestigious client base includes individual investors and owners, partnerships, financial institutions, and REITs. The firm’s 30 professionals provide comprehensive market coverage throughout New Jersey, New York, Pennsylvania and Delaware.
Now in its 109th year, Kislak was among a select group of firms recognized as a 2014 Power Broker by CoStar Group, Inc. for multifamily sales transactions in northern New Jersey and this was the firm’s ninth consecutive recognition.