37-Unit Apt. Flips for $3M

ROSELLE, NJ-For the second time in less than two years, the four-story, 37-unit apartment complex at 118-120 and 126 W. 2nd Ave. here has a new owner. West Second Realty LLC, a local group that acquired the property in mid-2006, has sold it to West 2nd Avenue Roselle LLC, another local investment group, for more nearly $2.9 million. That sale price works out to just more than $77,000 per unit.

The latest sale was arranged by Nat Gambuzza and Greg Babaian, both senior associates of Marcus & Millichap in the firm’s Elmwood Park, NJ office. The pair had orchestrated the 2006 sale as well, and after improvements said to have increased the building’s rental income, the asset has been resold for what Gambuzza terms, “a premium price.” The sale price in the earlier deal was not disclosed.

In the latest transaction, the buyer assumed the seller’s first mortgage at a 5% interest rate, according to Gambuzza, and paid the remaining balance in cash. “This buyer’s strong financial position helped the seller avoid a prepayment penalty,” he says.

On the legal side, the seller was represented by attorney Kenneth Traum of Hackensack. The buyer was represented by Craig Heller of Aboyoun & Heller of Pine Brook.