Meridia Water’s Edge, a 108-unit rental building that began leasing two years ago, has sold for$29.328 million, or about $271,556 per unit.
In a press release issued Friday, Livingston-based Gebroe-Hammer Associates said it represented the seller, Meridia Water’s Edge Urban Renewal Rahway, an LLC created by Linden-based Capodagli Property Company. The buyer was identified as 4 City Hall Plaza Urban Renewal, which, according to certificates filed with the state in November, was created by a Union-based development and property firm.
“Rahway has established itself as one of New Jersey’s leading residential centers for urban sophisticates seeking affordability and a convenient metro lifestyle,” Gehane Triarsi, the firm’s sales representative and Union County market specialist, said. Downtown is home to more than 4,000 residents, approximately 60 percent of whom are renters, he added.
Apartments at the 4 City Hall Plaza development range from about 672 to 850 square feet, and break down as:
- 52 two-bedrooms
- 38 one-bedrooms with an office
- 18-one bedrooms
Water’s Edge is assessed for $8,068,800 for 2015, which normally would generate a property tax bill of about $509,706 but the project has a 10-year Payment In Lieu Of Taxes (PILOT). This year, that payment is about $212,000. As a previous vacant parcel, the land was assessed for $445,000, which would translate to property taxes of $28,111, but it didn’t generate any revenue since it was owned by the Redevelopment Agency.In March, City Council approved the transfer of the 10-year PILOT on the five-story project.
Capodagli purchased a 0.75-acre parcel adjacent to the library from the Redevelopment Agency for $1 million — less about $160,000 for soil removal — for the project. The firm later paid another $25,000 to create more parking spaces for the building.
Water’s Edge first was proposed as a 116-unit complex five years ago. The Planning Board gave its approval in November 2011 followed by City Council awarding a 10-year PILOT in December 2011. The building began leasing in early 2014.
A number of downtown developments have changed hands in recent years, including:
- River Place, 136 units, sold for $36 million ($264,705/unit) in early 2015
- Park Square, 159 units, sold for $46.5 million ($292,452/unit) in late 2014
- Riverside Apartments, 31 studio apartments, sold for $2.418 million ($78,000/unit) in May 2013
The Park Square and Riverside Apartments sales included retail/commercial space of 6,000 and 1,000 square feet, respectively.