Jersey City, N.J. — Jersey City is undergoing a boom of investment demand fueled by gentrification, says brokers at Gebroe-Hammer Associates. With property appreciation up approximately 7 percent in the past 12 months, investors and renters alike are drawn to Jersey City for its proximity to Manhattan at a lower price point.
“Jersey City is right behind Brooklyn in terms of gentrification and its impact on the tenant demographic and accelerating property values and asking rents,” said Nicholas Nicolaou, senior vice president and Hudson County market specialist at Gebroe-Hammer. “The market and its existing multi-family housing stock have proven they can withstand virtually anything the economy or housing market might throw at it.”
Nicolaou, who has recently negotiated a four-building portfolio sale with a total of 64 units, said that existing apartment buildings are especially suitable for repositioning in the Jersey City market. The total sale price was $7.6 million for 74-76 Fairview Ave., 100 Duncan Ave., 485-487 Martin Luther King Drive and 222 Jewett Ave. Nicolaou noted that the buyer was attracted to the portfolio’s mix of one to three-bedroom units and convenient locations.
Earlier this month, Nicolaou and brokerage team member Eli Herskowitz, sales associate, secured the $3.2 million sale of 31 additional units in the Jersey City Heights area, mostly comprised of two and three-family residential homes and multi-family properties. The property, located at 516-529 Central Ave., the five-story building includes 27 apartment units and four ground-floor commercial units. Located near Palisade and Ogden avenues, the area boasts a clear view of the Manhattan skyline.
“Gentrification has extended inland to Jersey City Heights due to two factors – its affordability and range of transportation options,” said Nicolaou. Commuting is convenient with the light rail elevator at Congress Street, which connects to the 9th Street/Congress Street Station along the Hudson-Bergen Light Rail. Midtown Manhattan is a mere minutes away with transportation options including bus, train and ferry service.
Nicolaou has also coordinated the $1.6 million, two-building sale of 37-39 Bleecker St. and 37 Patterson St. The Bleecker St. property consists of 11 units while the Patterson St. property has four units and four garages.