Scarcity play: Hoboken apartments fetch $56M

Skylight Real Estate Partners and PCCP buy in “supply-constrained” market

Tri-State /
Jun.June 28, 2022 05:11 PM
Skylight Real Estate's Bennat Berger with 300 Grand Street

Skylight Real Estate’s Bennat Berger with 300 Grand Street (Skylight Real Estate, Street Easy, iStock)

It’s all about scarcity.

A joint venture purchased a 99-unit multifamily complex in a tight New Jersey rental market for well over half a million dollars per apartment.

The venture between Skylight Real Estate Partners and PCCP bought the Grand Adams complex at 300 Grand Street in Hoboken for $56.7 million, Jersey Digs reported. JLL Capital Markets arranged equity for the recapitalization. The deal works out to about $573,000 per unit.

Bennat Berger, a founding partner at Skylight, noted in prepared comments that the purchase was motivated by the property’s location, as the firm has been looking at “supply-constrained markets.”

The complex dates back more than a century, built as the Keuffler & Essel factory in 1906. SInce then, the facility has been transformed from an instrument factory to a rental complex featuring exposed brick and wood-burning fireplaces.

Amenities at the complex include covered parking, laundry service, a doorman, courtyards, a dog park and an electronic package concierge. The monthly rent ranges from $3,560 to $4,300, according to Apartments.com.

Despite soaring interest rates, multifamily brokers in New Jersey say demand is keeping them busy. In Bayonne, Marcus & Millichap associate David Ferber has a $76 million listing with an average unit price 6 percent higher than the average sale price late last year. Ferber still garnered 115 confidentiality agreements in three weeks.

Skylight is a relatively new firm and has joined forces with PCCP before. In November, a joint venture between the two companies acquired Infinity Edgewater in New Jersey for about $50 million, marking Skylight’s first multifamily asset purchase. The five-story, 100-unit building includes various amenities and 5,500 square feet of retail.

The company is reportedly looking for value-add, development and distressed opportunities in the multifamily and office markets in Florida and the greater New York City area.

[Jersey Digs] — Holden Walter-Warner





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