Monmouth County, N.J., November 30, 2016 – Central New Jersey’s Shore multi-family submarket and its coastal communities are living up to their reputation as one of the highest-barrier-to-entry investment markets in the state, according to the brokerage professionals at Gebroe-Hammer Associates. Tight supply of available for-sale product and limited new development have created heated competition among prospective buyers, resulting in aggressive bidding and new per-unit-price benchmarks.
Examples of this trend are highlighted in three recent Monmouth County sales arranged by the firm’s sales representative Adam Zweibel, who specializes in the Monmouth/Ocean County/Central New Jersey submarket. These transactions include the $9.2 million two-property portfolio trade of 74 units at 315 8th Ave. and 510 5th Ave., in Asbury Park; the 68-unit, $8.675 million sale of Patten Pointe Apartments in Long Branch; and 23-unit sale of 106-110 4th Ave., in Bradley Beach.
Each of the properties is in a prime location, easily accessible via automobile or mass transit and near abundant retail, dining and recreational options. The Asbury Park sale set a new price-per-unit benchmark – $125,000 – for the city this year in terms of its Class-B garden-apartment housing stock.
“In addition to their prime downtown location near Asbury Park’s famed boardwalk, the properties attracted tremendous investor interest associated with value-add potential that can be achieved with the implementation of capital improvements,” said Zweibel. “These enhancements, including but not limited to kitchen and bath renovations, appeal to today’s tenant base of individual professionals, families and retirees, who value the seaside locale and short, easy commute to major centers of employment and culture, including Midtown Manhattan, North Jersey, the Trenton/Princeton corridor and Philadelphia.”
Patten Point Apartments, located at 581 Patten Ave., in nearby Long Branch had similar investor appeal, according to Zweibel, who collaborated with Managing Director Joseph Brecher to exclusively represent the seller and procure the buyer. The 68-unit garden-style complex features a mix of one- and two-bedroom layouts, some of which are newly renovated and offer water views. Just minutes from Pier Village, the area’s premier shopping and dining destination, Patten Pointe also is close to Monmouth Mall, Monmouth Racetrack, golf courses, parks and public transit. The Garden State Parkway and Routes 35 and 36 are less than five minutes away.
In the Bradley Beach trade, Zweibel exclusively represented the seller in the sale, which averaged a per-unit price of $108,695. Less than 1 square mile in geographic size, the borough borders the Monmouth County municipalities of Avon-by-the-Sea, Neptune City and Neptune Township.
“With vacancy rates at their lowest level since Q3 2002 and asking rents on the rise, the Monmouth and Ocean county submarkets are showing no signs of slowing down, in terms of investor interest,” explained Zweibel. “These trends are expected to extend on an annualized basis well into 2018.”