Margules Properties purchases five-building portfolio for $8.5 million

November 24, 2015 - Front Section
Jersey City, NJ Margules Properties Inc. purchased five mixed-use buildings totaling $8.5 million. The NYC-based investment firm owns and manages one million s/f of development rights in the city’s Journal Sq. neighborhood. Margules Properties plans to upgrade the buildings and make them more appealing to new retail and millennials looking for convenient and reasonably priced rentals near the PATH train. “We have a very positive view of the future of Jersey City,” said Margules Properties CEO Eric Margules. “We are looking forward to being part of the revitalization of a dynamic area.” Two of the buildings form a triangle bound by Montgomery Ave., Orchard St. and Jordan Ave., in the McGinley Sq. section of Jersey City. They include a gut-renovated, five-story walk-up building at 52 Orchard St., with 12 apartments and three stores and 685 Montgomery Ave., a three-story mixed-use building with three stores and five apartments. The other buildings include: 70 Tonnele Ave., 142 Monticello Ave.  and 2175 JFKennedy Blvd. According to Margules, the McGinley Sq. area was up-zoned with similar zoning to Journal Sq. Directly across Montgomery Ave., a developer has recently received approval to construct a 21-story, 595 unit apartment building. Directly across Orchard Street, a different developer has announced plans to build a 200,000 square foot building. “The city has proposed closing Orchard Street right where our building is located and designating it a pedestrian walkway,” added Margules, who pointed out that about 300 feet away is a large armory building which is underutilized at this time, but is anticipated to be a venue for art fairs and parties, just like NYC armories. “This neighborhood is on the cusp of revitalization” said Margules. “We believe this area will begin to attract the arts community and younger people that want to be close to Manhattan and want good size apartments for reasonable rates” Earlier this year, Margules Properties purchased the Sip Building, 48-58 Sip Ave. in Jersey City, for $2.5 million, or $500 per square foot. The 5,000-square-foot, single-story, freestanding storefront property sits on a quarter-acre in the Hudson waterfront submarket of Northern New Jersey near several new residential and commercial developments in Jersey City.  It features four retail stores and has significant air rights above the triangle-shaped building. Margules also owns the adjacent 60-64 Sip Ave., a 64-unit multifamily building with eight retail stores on the ground floor, which it purchased in October 2012 for $9.18 million. Combined, the two buildings offer 280 feet of frontag “We are looking to buy more properties to further build our presence in Jersey City,”  added Margules, who said they also plan to continue increasing their  holdings in Manhattan, Queens and Brooklyn where they also own over 70  buildings. “The number of buildings we own there will continue to increase,” he said. “We are actively looking in Queens and Brooklyn and will continue to expand our presence there as well. Both boroughs still offer large apartments in close proximity to transportation into the city at reasonable rates.”
Tags:

Comments

Add Comment


More from the New York Real Estate Journal