Gebroe-Hammer Arranges $327.8M Sale of Multifamily Portfolio in New Jersey

by David Cohen

HUDSON COUNTY, N.J. — Gebroe-Hammer Associates has arranged the sale of a 118-building, 2,137-unit multifamily portfolio in Hudson County. The Gateway Portfolio was separated into six packages, which sold for a total of $327.8 million. The properties are located throughout Jersey City, West New York, North Bergen, Guttenberg and Union City.

Nicholas Nicolaou of Gebroe-Hammer represented the seller, a private investor, in the transaction.

“The Gateway Portfolio in its entirety and as separate packages presented an extremely rare multifamily investment opportunity,” says Nicolaou. “It marked the highest concentration of for-sale stabilized assets in Hudson County ever to come to market at a time when asking rents for this apartment submarket are expected to advance upward of 6 percent over the next few years.”

The largest of the six packages sold for $190.6 million and involved 67 buildings and 1,272 units in West New York, Jersey City, North Bergen and Guttenberg. The second largest package sold for $97 million and involved 35 buildings and 588 units in Jersey City. The buyer in both transactions was Optimum Holdings LLC.

Rounding out the sale of the portfolio was another Jersey City deal which brought $190,000 per unit, two separate transactions in Union City totaling 10 buildings and 164 units that sold for a combined $22.9 million, and a transaction in West New York that included five buildings and 105 units that sold for $15 million.

“The out-of-state seller recognized the time was right to shed these assets,” says Nicolaou. “Hudson County’s ‘boom’ years are far from being fully realized and multifamily investors — from private individuals to institutional entities — are seeking to either gain entry or expand their holdings through the purchase of existing product or development-deal acquisitions.”

The disposition of the portfolio spanned 18 months, according to Nicolaou.

— David Cohen


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