The announcement last week by Gebroe-Hammer Associates, which represented the seller, also included the sale of Alden Apartments for an undisclosed price. UPDATE, Feb. 25: That undisclosed price is $5.35 million, according to the deed that was filed Jan. 8, and it looks like the buyer was Lodi-based Cole Group Realty, apparently its first New Jersey residential property.
The 32-unit complex on Alden Drive includes 20 two-bedroom units and 12 one-bedroom units. Built in 1945, the property is assessed at $500,000, with a property tax bill of about $31,020.
Built in 2005, River Place consists of 76 two-bedroom and 60 one-bedroom units, ranging from 859 to 1,471 square feet. The original developer, Heartstone Development, sold the two-building complex in 2011 for $26.25 million. The most recent sale puts the average per-unit price at about $264,705 — a 37-percent premium over the $193,000 per unit when it sold three years ago.
“Almost 75 percent of the units have been renovated during the past three years and the new owner plans to rehab the remaining units upon turnover in order to render them more competitive,” Gebroe-Hammer President Ken Urbanowitz said in a press release. “The buyer recognized significant upside potential as the city’s downtown district continues to mature and transition to one of the state’s premier cultural and entertainment hubs,” he said.
East Hanover-based Heartstone has since partnered with AST Development and Sterling Properties to complete the $18-million Metro Rahway, a five-story, 116-unit rental complex on Campbell Street that started leasing last fall. Metro Rahway was awarded a 15-year Payment In Lieu Of Taxes (PILOT) while River Place was constructed on property owned by the Parking Authority, which shares a $340,000 annual PILOT with the city.
“Rahway has a rather unique personality with pockets of residential and commercial neighborhoods that appeal to today’s commuter tenant base,” said sales representative Gehane Triarsi, noting that almost 40 percent of households within a five-mile radius are renter-occupied. “In addition to Alden Apartments’ distinctive townhome-like designs and amenities, which attracted the buyer’s interest, the garden community is within a few blocks of the area’s 10 parks, including Rahway River Park; a lake; grocery stores; banks; restaurants, and schools,” Triarsi said.