800 Madison Street Sells from Tarragon to CB Richard Ellis Investors
HOBOKEN, N.J. – May 25, 2011 – (RealEstateRama) — One of Hoboken’s newest luxury rental communities, 800 Madison Street, traded this week. Commercial real estate services firm Cushman & Wakefield, Inc.’s Metropolitan Area Capital Markets Group orchestrated the property’s sale from Tarragon Corp. to CB Richard Ellis Investors.
Completed in late 2008, this stabilized, 217-unit apartment community occupies an entire city block in northwestern Hoboken. The building features five stories of residences over grade-level covered parking. One-, two- and three-bedroom units offer an above-market average size of 998 square feet. Residents enjoy high-end, condominium-quality designs and finishes, and the property’s ample amenities include one of Hoboken’s few private pools, a community center, fitness room and rooftop decks.
At the time the property went under contract, operations were dramatically improving. It was near full occupancy, with a trend towards no concessions on new leases.
Cushman & Wakefield initially marketed 800 Madison for sale during its construction; the asset was taken off the market when Tarragon filed for bankruptcy in early 2009. The developer emerged from Chapter 11 in July 2010, and the Cushman & Wakefield team again brought the community to the market.
“As a testament to the desirability of the Gold Coast multi-family market and the uniqueness of the opportunity, we received a near record 260 requests for offering materials,” noted Brian Whitmer, who handled the assignment with Metropolitan Area Capital Markets Group team members Andrew Merin, David Bernhaut and Gary Gabriel. “Hoboken remains the best performing multi-family submarket in Northern New Jersey, and as a result, the institutional-quality Class A communities are highly sought after by the investment community. CBRE Investors recognized the market’s long-term stability, the upside potential as rental demand roars back, and the competitive advantage of owning one of the newest luxury rental communities in the city.”
According to Merin, Hoboken currently is experiencing insatiable rental demand. “The town’s average occupancy for best-in-class product holds near 100 percent and posts annual rent growth of double digits during robust times,” he said. “This positions 800 Madison for significant near term upside as this competition-constrained market continues to strengthen.”
Merin credits the one-square-mile town’s 24/7 atmosphere – including a public transit-oriented environment and an abundance of restaurants, bars and quality nightlife – for attracting an affluent, educated resident base that is predisposed to leasing. Hoboken sits just across the Hudson River from Manhattan, the nation’s foremost employment powerhouse. Additionally, New Jersey’s largest office submarket (Jersey City) is a short ride by rail to the south. Hoboken also is favored by those who enjoy a reverse commute to Northern New Jersey’s suburban corporate campuses.
Cushman & Wakefield’s Metropolitan Area Capital Markets Group specializes exclusively in investment sales and joint venture advisory of office, industrial, multifamily and retail properties throughout New Jersey, New York, Fairfield County, Conn., and Pennsylvania. It has completed more than $14.5 billion worth of transactions since 2000. 800 Madison marks the group’s fifth multi-family sale in Hoboken, placing the total transactional value at $490 million, comprising 1,300 units.
Evelyn Weiss Francisco: evelyn (at) caryl (dot) com, (201) 796-7788, www.twitter.com/carylcomm