November 9, 2022
A pair of mixed-use buildings just changed hands in a corner of Jersey City that looks primed for growth over the next few years. GRID Real Estate has announced the closing of 320-322 Central Avenue, a two-building portfolio sitting at the corner of Griffith Street in the Heights neighborhood.
This Jersey City Heights mixed-use investment property includes 10 residential units, an antenna array, and two retail spaces currently leased to City Discount & Furniture and a Verizon Wireless location.
Deal Details
The buyer, Central Avenue Holdings LLC, came to Jersey City from Central Jersey with a specific strategy in mind: finding value-add opportunities where their retail background would give them an edge. GRID represented both the buyer and the seller in the transaction.
The sale closed at $282 per square foot, or $316,000 per unit, with an in-place cap rate of 5 percent.
“In an inflationary interest rate environment where rate locks are a thing of the past, this transaction took finesse from all parties to get it over the finish line,” said Gregory D. Edgell of GRID. “There was considerable interest in this site due to the upside potential from the retail rents, large legacy rent-controlled apartments, and redevelopment potential.”
Why Central Avenue Is Drawing Investor Attention
Much of that upside potential ties back to the Central Avenue Redevelopment Plan, adopted by the Jersey City council last year. The 320 Central Avenue site sits at the southwest corner of a 2.68-acre redevelopment zone that calls for a 400-space parking garage, a new municipal complex, and higher-density development.
“Central Avenue continues to see adaptive reuse projects as well as ground-up development, which has brought fresh capital to this historically overlooked corridor,” Edgell added. “Rents are up across the city, and Central Avenue is no exception.”
The corridor recently underwent a $4 million renovation that included resurfacing the roadway, installing new traffic signals, adding sidewalks and street trees, and re-striping the street. That investment is part of a broader wave of improvements in the Heights, including the revamp of Riverview Park, the ongoing restoration of Reservoir #3, and a new police headquarters set to replace an aging facility.
What This Means for Jersey City Heights Investors
Deals like the 320-322 Central Avenue sale point to a neighborhood in transition. Investors are increasingly looking at Jersey City Heights mixed-use investment properties for their combination of stable in-place income, from long-term residential and retail tenants, and long-term upside tied to public infrastructure investment and future redevelopment.
For buyers who understand retail and are comfortable navigating legacy rent-controlled units, corridors like Central Avenue offer a rare mix of cash flow today and appreciation potential down the road.
GRID Real Estate will continue tracking activity along Central Avenue and throughout the Heights as redevelopment plans move forward.
