Jersey City apartments sell for record $221.5M

Totaling 408 units, two adjacent Class A multifamily properties in Jersey City's Paulus Hook neighborhood sold for $221.5 million.

The deal is the largest single multifamily transaction in the state in nearly five years, according to CBRE. The firm represented the seller - institutional investors advised by J.P. Morgan Asset Management - and procured the buyer, Hines Interests. The acquisition of The Lenox & Quinn by the New York-based real estate investment manager's flagship commingled U.S. core-plus fund, Hines U.S. Property Partners, marks its first in the city and sixth in the sector.

CBRE and Hines unveiled the transaction in separate announcements July 16.

The high-rise buildings offer mirrored amenities, including a rooftop deck with resort-style pool, fitness center, resident lounge and children's playroom. The unit mix features studios as well as one- and two-bedroom layouts, all with luxury finishes. Located on Van Vorst Street, the properties are currently 96% leased, Hines said.

North Jersey, and the city in particular, rank among the nation's most in-demand housing markets. According to Apartments.com, Jersey City rents were up 2.7% year over year in June 2024. That's among the highest nationwide . In its announcement, Hines noted a nearly 8% annual rent growth in Paulus Hook since 2019 outpacing Jersey City as a whole and Hoboken.

The Lenox & Quinn are both walking distance to Grove Street and Exchange Place PATH stations, providing access to New York City. CBRE cited the neighborhood's 96 Walk Score .

Strong demand

"Jersey City benefits from strong renter demand and population growth, marking The Lenox & Quinn an attractive investment in a supply-constrained market," said Jason Alderman, senior managing director and city head of New York at Hines. "It's amenity-rich location and spacious units cater to modern renters and differentiates itself from rental products in Manhattan."

CBREVice Chairman Jeffrey Dunne,First Vice Presidents Stuart MacKenzie andEric Apfel, andSenior Financial Analysts Travis Langer andDaniel Blumenkrantz arranged the transaction.

"This marks our team's latest significant multifamily sale in Metro New York in the past few months," Dunne remarked. He cited notable transactions completed since the end of last year representing a total consideration of more $825 million:

• 15 Bank in White Plains (501 units); Sutton Landing Deer Park (200 units) and Sutton Landing Mount Sinai (225 units) on Long Island; and Avalon Mamaroneck in Westchester County (229 units) in New York;



• Hudson Mews in North Bergen (288 units) , and now Lenox and Quinn (408 units), in New Jersey.

 

MacKenzie also noted the exceptional demand from renters and investors in Jersey City. Like Alderman, he highlighted the contrasts between the opposite banks of the Hudson River. "New Jersey's waterfront should continue to outperform with Manhattan rents hitting all-time highs, compelling renters to seek more value outside of the city," MacKenzie stated.

Last month, the state recorded another record-making multifamily deal. The Kislak Co. announced Atlantic City's largest transaction in the sector at least a decade , at $20.5 million.

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