Institutional money snapping up properties in northern NJ

As prices climb in Manhattan, large investors look across the Hudson

New York /
Aug.August 20, 2014 12:30 PM

Accelerating property prices in Manhattan and Brooklyn are leading institutional investors to scoop up property in Northern New Jersey, according to Massey Knakal Realty Services.

“A lot of institutional capital, especially in New York, is chasing limited supply,” Adrian Mercado, Massey Knakal’s vice president of research, told the Record. With some of those investors getting priced out of the market, Mercado told the website money is finding its way to northern New Jersey.

Two deals closed by JPMorgan Chase at a combined purchase price of $440 million illustrate the trend, according to a Massey Knakal report cited by the newspaper.

In June, the bank paid the LeFrak Organization $315 million for a 22-story office building at 575 Washington Boulevard in Jersey City, the largest office building purchase in Northern Jersey this year. JPMorgan also received $224 million in tax credits to keep its operations based out of the building in the state.

Just days later, JPMorgan Investment Management scooped up the Curling Club Apartments at 1130-1133 Grand Street in Hoboken for $125.5 million.

The purchases come at a time when institutional investors are looking to deploy more capital to real estate as property investments outperform bond yields, Mercado told the newspaper. [Record]Tom DiChristopher


Related Articles

arrow_forward_ios
122 8th Street in Passaic NJ, Stonemont Financial Group's Zack Markwell (Loopnet, Getty, Stonemont Financial Group)
Warehouse rising from ashes of infamous Passaic fire
Warehouse rising from ashes of infamous Passaic fire
400 Parsons Pond Road (Google Maps)
Developer pitches 585 apartments on Bergen County office campus
Developer pitches 585 apartments on Bergen County office campus
Hackensack mayor John Labrosse, 436 Main Street (Loopnet, Getty, City of Hackensack)
Hackensack Sears redevelopment is back on
Hackensack Sears redevelopment is back on
Mark Zuckerberg, Jeff Bezos, Hudson Yards and San Francisco's Salesforce tower (Getty, Dead.rabbit/CC BY-SA 4.0/via Wikimedia Commons)
Tech office leasing plummeted in fourth quarter
Tech office leasing plummeted in fourth quarter
Rendering of 640 Columbia Street in Red Hook, 9-11 Metrotech Center and TerraCRG's Ofer Cohen
Brooklyn boasted $9B in investment sales last year
Brooklyn boasted $9B in investment sales last year
Oxford Hospitality's Paul Amoruso and 1 Computer Associates Plaza in Islandia (Getty, Jones Lang LaSalle IP, Inc., Oxford Hospitality)
Owners of vacated CA Technologies’ campus paid pennies on the dollar
Owners of vacated CA Technologies’ campus paid pennies on the dollar
M&T Bank's Darren King
A fifth of M&T’s office loans in danger of default
A fifth of M&T’s office loans in danger of default
Bedford Stuyvesant Restoration Corporation president Blondel Pinnock along with a rendering of the planned project at Bedford-Stuyvesant’s Restoration Plaza (top) and the current site at 1368 Fulton Street in Brooklyn (bottom) (Getty, LoopNet, Bedford-Stuyvesant Restoration Corporation)
Bed-Stuy commercial project aims for 840K sf
Bed-Stuy commercial project aims for 840K sf
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...