Investment Overview

Marcus & Millichap is pleased to offer for sale the multi-family portfolio located in Highland Park, New Jersey. These properties are ideally located in quiet residential neighborhoods, just blocks from Highland Park’s revitalized downtown and less than 10 minutes from the New Brunswick Train Station. They benefit from immediate proximity to Rutgers University, Robert Wood Johnson University Hospital, Saint Peter’s University Hospital, and major employers throughout New Brunswick and Edison. The portfolio offers a well-balanced mix of one-, two-, and three-bedroom apartments, with all buildings having undergone significant capital improvements in recent years. At 222 Denison Street, upgrades include a new boiler installed in 2024, replacement of underground return lines, resurfacing of large roof sections, new gutters, renovated common areas with new walls and lighting, and upgraded kitchen appliances, cabinets and flooring as well as a new bathroom in many units. At 117 South First Avenue, the oil boiler was replaced in 2023, with new kitchen, new bathroom, new floors and new appliances in many of the units. At 203 South Fourth Avenue, most of the basement return lines were replaced, and the common areas were fully renovated with new walls, flooring, and lighting, with multiple units having a total upgrade with new bathrooms, new kitchens with new appliances and some having moved entrances and reconfigured bedroom layouts. Current rents remain below market, presenting a clear value-add opportunity. Additional upside can be achieved through allowable vacancy decontrol, enabling the next owner to capture higher rents in accordance with local regulations. Highland Park is a residential borough in Middlesex County, approximately 35 miles southwest of New York City, directly across the Raritan River from New Brunswick. The borough’s strategic location offers easy access to major employment centers via Route 27, Interstate 287, and the NJ Transit rail system, which provides convenient connections to New York Penn Station and Downtown Newark. Highland Park is part of the North Middlesex County submarket, one of the most resilient and actively traded regions in the New York metropolitan area. Recently, this submarket recorded a low vacancy rate of just 3.7 percent, supported by a net absorption of 548 units over the past year. This strong performance is noteworthy, especially considering the addition of over 3,500 new units in the last five years, which increased the total inventory by more than 10 percent. Despite these deliveries, demand has kept vacancy rates well below national averages, and rents continue to rise steadily. Current rent growth stands at three percent annually, outpacing the metro average of 2.5 percent. From a long-term perspective, Highland Park’s low-density residential zoning and strong historic preservation policies restrict new development, which in turn limits competition and supports consistently high occupancy rates.