River Place fetches $26m in sale

One of the first residential projects that helped to kick off Rahway’s redevelopment, River Place, has sold for $26.25 million.

Describing it as one of Central Jersey’s largest multi-family transactions this year, a press release issued by Gebroe-Hammer Associates announced the deal last week. The Livingston-based firm represented the buyer, a private investor, as well as the seller, Heartstone Development.

The two-building rental complex on Lewis Street was built in 2005 and has a total of 136 units (76 two-bedroom/60 one-bedroom), ranging from 859 to 1,471 square feet. East Hanover-based Heartstone Development has Planning Board approval for Station Place, a 116-unit rental complex at the current site of A&M Industrial Supply on Campbell Street (between Elm and West Cherry streets). But as recently as last year, the developer had plans to submit revised plans of 85 units.
The roughly $193,000 per-unit price was “because of River Place’s transit-oriented location, historically high occupancy rate and upscale designs and amenities,” said Joseph Brecher, executive vice president. “The opportunity to acquire an apartment complex of this caliber, with a 99-percent occupancy rate at the time of sale, is extremely rare given the competitive multi-family investment environment,” said Brecher, adding that the property is part of the buyer’s “portfolio expansion in central New Jersey.
“New Jersey cities like Rahway have re-emerged as flourishing urban centers where rent growth is accelerating and occupancy rates are outpacing the national average,” Ken Uranowitz, managing director, said in the release. “Trading velocity within the Union/Essex/Hudson/Bergen County corridor – from Class-A to B and C properties – is ramping up, with several key deals in the pipeline expected to close by year-end.”
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The sage of the outbound elevator at Rahway Station got interesting this week. A report on MyCentralJersey.com appeared Tuesday, based on this letter from the Chamber of Commerce, followed by this NJ Transit alert on Wednesday announcing the elevator was back in operation, finally wrapped up by this MCJ story yesterday on the elevator back in operation. Hooray, at least the elevator wasn’t closed for more than a year like the main stairs.

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