A pair of mixed-use buildings have changed hands in a section of Jersey City’s The Heights neighborhood that looks set for growth over the next few years.
GRID Real Estate announced the closure of 320-322 Central Avenue, a pair of buildings on the corner of Griffith Street. The two-building portfolio consists of 10 residential units, an antenna array and two retail units currently occupied by City Discount & Furniture and a Verizon Wireless outpost.
The buyer, a company called Central Avenue Holdings LLC, came to Jersey City from central Jersey and was looking for value-added opportunities where their retail experience would give them an edge over others. GRID represented both buyer and seller in the transaction, which traded at $282 per square foot or $316,000 per unit with a 5% cap rate in place.
“In an inflationary interest rate environment where rate locks are a thing of the past, this transaction required finesse from all parties to cross the finish line,” says Gregory D. Edgell of GRID. “There was considerable interest in this site due to the potential for higher commercial rents, large rent-controlled legacy apartments and potential for redevelopment.”
This revitalization may come from the Central Avenue Redevelopment Plan, which was enacted by the Jersey City council last year. The 320 Central site is located on the southwest corner of a 2.68-acre plan that aims to facilitate the construction of a 400-space parking garage, a new municipal complex and a development at higher density.
“Central Avenue continues to see adaptive reuse projects as well as grassroots developments that have brought new capital to this historically neglected corridor,” adds Edgell. “Rents are up all over the city and Central Avenue is no exception.”
Central Avenue just suffered a $4 million renovation which saw the resurfacing of the roadway, the installation of new traffic signals, new sidewalks and street trees, and the re-striping of the street. Other major undertakings in The Heights include the redesign of Riverview Parkrenovation in progress at Tank #3and a new font Headquarter which must replace an aging installation.