Investment Overview

Marcus & Millichap is proud to exclusively market the property for sale located at 325 Grantwood Blvd. in Palisade Park, Bergen County New Jersey. The well maintained, value-add building is a two story, brick, garden style building, constructed on a 0.506 acre lot and features 12 apartments, 11 private garages, storage facilities, a laundry room with 2 washers and 2 dryers. The unit mix is well suited for the market with eight 1Bed/1Bath apartments and four 2Bed/1Bath apartments. Palisade park is a strong lower Bergen County municipality with a median household income of $132,427 and nearly 30% of households report income of $150,000 or more, illustrating that Palisade Park contains a significant upper-income demographic. The owner occupancy rate is relatively low, 32%-37% of units are owner occupied, meaning a large share of the housing stock is rental oriented because the median home price of $704,000 created a high barrier of entry to many home buyers. The average commute time for workers in the municipality is 32 minutes, for local workers and those commuting into NYC. Favorable rent control ordinances further strengthen the desirability of Palisade Park. Owners are allowed 4% annual increases and once an apartment becomes vacant the rent can increase to the average of comparable units in the municipality or the highest rent paid by a comparable unit in the same building. The property located at 325 Grantwood Blvd. represents a solid investment based on its minimal maintenance requirements, strong market demographics, strong cash flow and most importantly future upside potential of 20% on the gross rental income and an estimated 22% increase in the NOI. The current cap rate of 5.75% can be increased to 7.02%, offering investors a compelling stabilized cash-on-cash return of 6.69% and strong forward looking performance.