Passaic, N.J. – Known as a former textile and metal-working center, Passaic’s high-density workforce-housing stock includes 40-44 Fourth Street Apartments, a 33-unit early-20th-Century-era midrise that recently sold for $5.35M in a transaction arranged by Gebroe-Hammer Associates’ Senior Vice President Debbie Pomerantz. The Passaic County/North Jersey market specialist exclusively represented the seller, GMX LLC, and procured the unnamed buyer, a private investor, in the trade.
“When a private investor approached the owner, a long-time client, with an offer that the owner deemed very attractive, the owner decided to consult with me, based on my long-time market knowledge and experience in different economic cycles,” said Pomerantz. “As a result, I was able to quickly procure a new buyer – another long-time client – who made a superior offer that was immediately accepted, resulting in a streamlined transaction from start to finish.”
Featuring 32 apartment homes and 1 ground-floor retail unit, 40-44 Fourth Street Apartments is situated at Passaic’s eastern boundary in the Eastside neighborhood where it is separated by the Passaic River from four Bergen County towns. These municipalities include East Rutherford, Garfield, Rutherford and Wallington.
“Boasting a 98% renter population, this neighborhood is relatively historic, has a lot of character, offers outstanding walkability and has excellent mass-transit for an easy bus commute to employment centers at nearby Newark-Liberty Airport (12 miles) as well as Manhattan (10 miles),” said Pomerantz, who noted renter demand is above average for this neighborhood. “These characteristics and fundamentals signal sustained demand for multifamily and an upward market-rent trajectory – both of which appeal to investors across the board.”
Since being acquired by the seller, 40-44 Fourth Street Apartments has undergone modest renovations to a number of units that include new windows and separate hot-water tanks. Exterior improvements include a new roof in 2022.
According to Reis/Moody’s Analytics, on an annualized basis through 2023 and 2024 asking and effective rents are expected to advance in the Passaic County submarket as a whole by 1.5% and 1.2%, respectively. Pre-1970s vintage multifamily product accounts for 67% of the apartment inventory and has a current occupancy rate of nearly 98%.
At the center of the city’s mass-transit core is Passaic Bus Terminal, the home base for NJ Transit and Community Coach service to Paterson, Rutherford, Newark, Clifton, Garfield and Wallington as well as other local and regional points. Commuter jitney busses also operate along Main Avenue. In addition, Passaic Rail Station offers service on the Main Line, southbound to Hoboken Terminal and Secaucus Junction connecting to New York Penn Station as well as Newark Airport. Northbound service is provided to Paterson and Ridgewood as well as Suffern and Port Jervis, N.Y.
Rounding out Passaic’s modern-day appeal is several business districts, which are the target of local revitalization initiatives. These include Main Avenue, which begins in the Passaic Park section and follows the curve of the Passaic River to downtown. There is a diverse collection of shops, restaurants and businesses reflecting the cultural demographic groups that call the city home.
As a leading single-source investment brokerage services firm, Gebroe-Hammer represents each client’s unique interests and requirements as well as acquisition and disposition needs throughout the New Jersey-New York State-Greater Philadelphia Metro corridor. The firm also markets mixed-use and freestanding office and retail properties.
While serving as each client’s leading advocate, Pomerantz and the firm’s dedicated market specialists demonstrate unrivaled agility and commitment to streamlining the entire sales process, from contract to closing. In addition to serving in a collaborative capacity as a trusted strategic advisor, Gebroe-Hammer’s brokerage professionals are on the frontlines of emerging centers of multifamily activity throughout the region, where they also are identifying future opportunities.