NEW JERSEY: Record-Breaking Spread
Multifamily rents in Northern New Jersey are as much as 40% lower than in NYC’s residential strongholds, and there’s never been a greater price discrepancy between urban areas and ring communities (think Downtown Manhattan vs. Hoboken, or Gotham City vs. that unknown suburb where Batman will retire). We learned this shocking stat from Boston-based DSF Group prez Joshua Solomon (above) at Bisnow’s Northern NJ State of the Market event this week. Joshua’s firm also just picked up a luxury rental building in Westchester’s New Rochelle, which offers rents 30% below Manhattan, he says. (No more ramen for dinner to meet rent.)
The big city is easier to ignore as investors find value in outer areas, and places like Hoboken have never looked better. With multifamily buildings going for as much as $1M/unit in Manhattan, investors are going to look in the Sixth Borough, HFF senior managing director Jose Cruz (above) says. Development’s picked up as well, proving that the stroller crowd can’t all fit in Brooklyn. Boston-based Intercontinental Real Estate Corp is building 140 units at Hoboken's 900 Monroe in a JV with Bijou Properties. The ground-floor retail? You guessed it, pre-leased to a daycare.
