A 30-unit apartment complex on West Grand Avenue adjacent to the Wheatena section of Rahway River Park changed hands in April for $3.3 million, almost six years after it went for $2.55 million.
The building at 136-166 W. Grand Ave. was sold in April for $3.25 million to North Brunswick-based Riverside Apts, LLC, along with an adjacent lot for $50,000, according to property records. That works out to an average of $108,333 per unit. Livingston-based Benevento Associates, LLC, bought the property in May 2011 from Spotswood-based Venice Realty, LLC for $2.55 million.
Built in 1964, Riverside Gardens is comprised of 30 one-bedroom units with on-site parking and laundry facilities.
The seller replaced the roof, garage doors, windows, hardwood floors in each unit, heating systems and hot water tanks during the past seven years, according to Gehane Triarsi, vice president of Gebroe-Hammer Associates, which exclusively represented the seller and procured the buyer along with Senior Vice President Stephen Tragash. The buyer plans to implement kitchen and bath upgrades similar to those at nearby comparable complexes, she said in a press release from the firm last week.
Late last year, the building’s owner won a tax appeal for the 2012 tax year, reducing its bill by about 13 percent. The property (Block 161, Lot 39) is assessed for $1.15 million, generating a property tax bill of about $73,474 for 2017. The adjacent lot (Block 161, Lot 39) is assessed for $6,800.
“Rahway’s apartment housing stock is dominated by pre-1970s-era properties with inherent appreciation potential,” according to a press release from Livingston-based Gebroe-Hammer Associates. “The Route 1/East Scott Avenue district of Rahway has distinguished itself as the highest appreciating neighborhood in the city, catching the attention of seasoned multi-family investors ready to seize virtually any value-add opportunity.”
The building is “poised for a continuation of in-place capital improvements and modest upgrades that will have even broader appeal among the neighborhood’s ever-growing professional executive tenant base,” Triarsi said. Average rents for the neighborhood are about $1,790, which exceeds the average asking rent of approximately $1,356 for Union County, according to Triarsi, who credited Riverside Gardens being “within a top appreciating suburban neighborhood” blocks from a transit village.
The building sale is the third in as many years by Gebroe-Hammer in Rahway: the 108-unit Meridia Water’s Edge sold for $29 million in 2016 and the 136-unit River Place went for $36 million in 2015. So far in 2017, the firm has sales have totaled almost $84 million and 364 units in Union County.