The Manhattan-based firm of Jesse Sutton has bought a luxury apartment building in Bergen County for $36 million.
Sutton Equity bought The VUE Hackensack at 295 Polifly Road in Hackensack, according to Kislak, whose executives Andrew Scheinerman and Scott Davidovic arranged the sale.
Scheinerman noted that Sutton was looking for “properties outside of New York, given its tight rent control.”
Alexander Property Holdings was the seller of the rental property, Kislak said The real deal. The private real estate company is based in New City, New York, and originally purchased the property from the builder, who built it from 2015 to 2017.
In 2017, investors Gabriel Alexander and Berel Karniol borrowed $25.9 million at 3.88% interest to fund an investment in the entity that owns the project, Commercial Observer reported. The 78-unit building was 65% occupied at the time.
The luxury building consists mainly of two-bedroom units. The average unit size is just over 1,200 square feet and the average monthly rent is $2,650, according to Apartments.com.
Apartments have washers and dryers, floor-to-ceiling windows, and private balconies, some with New York City views. Building facilities include a virtual doorman, lounge, and fitness center.
New York-based Sutton was founded by Ralph Tawil, who previously launched Centurion Realty in the 1990s and built a portfolio of retail and office properties centered in Soho. Sutton owns several multi-family properties in New Jersey, as well as retail and office buildings in New York.
Among other transactions, in 2014 Sutton and Sitt Asset Management agreed to sell a six-story Midtown retail building at 1369 Broadway for north of $40 million.
Bergen County has some of the highest rents in New Jersey. The average monthly rent for a two-bedroom apartment last year was $1,768, according to RentData.org, behind only Hudson County.
Further luxury developments may be underway in Hackensack. A six-story, 130-unit luxury building has been proposed downtown, which would replace five buildings and a parking lot. However, many store owners in the area are still in business, creating controversy over the transparency of the development.
More than two dozen projects are underway in downtown Hackensack, according to NorthJersey.com