Q2 2012 Northern New Jersey, New Jersey Apartment Property Sales Analysis

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Q2 2012 Northern New Jersey, New Jersey Apartment Property Sales Analysis


Surprisingly given the strength of the apartment market, apartment sales petered out in the second quarter as Reis recorded only one deal. In May, the 75-unit Norfolk Village in Mahwah was sold by K Hovnanian at Mahwah IV to Panyork Mahwah LLC for $7.3 million ($97,333 per unit). The cap rate for the sale was 8.3%; the rolling 12 month cap rate was 7.5%, in-line with earlier readings. Marcus & Millichap reports increased sales activity and high interest in New Jersey properties, so it is possible that more deals will close in the second half of 2012.