Sold: Bayonne Deal Collides with Covid-19 Shutdown

 

I represented the buyer for this property on Avenue C in Bayonne. It was my first deal in Bayonne and I have come to really appreciate the town for several reasons: its proximity to Jersey City and New York make it a strong real estate market; the people in City Hall were a pleasure to do business with (sometimes that’s not the case as we all know); and the 22nd Street Meat Market is a treasure (try the italian sausage!). But these aren’t the reasons I will always remember the deal. That distinction belongs to the inopportune closing date: March 3, 2020. To wit,

  • The first confirmed case of Covit-19 in NJ tested positive on March 4.
  • Governor Murphy declared a state of emergency on March 9.
  • A statewide curfew began on March 16
  • Governor Murphy issued a stay-at-home order on March 21 requiring all non-essential businesses to close indefinitely by 9 pm that day.

Do you think things could have gotten ugly pretty fast? They could have but they didn’t because both the new landlord and the tenants displayed flexibility in dealing with the impact of Covid-19.

Data from Costar…
On March 13, 2020, the 5,250 SF Mixed Use property at 590 Avenue C Bayonne, NJ was sold for $942,000. This Class C building was built in 1900 and most recently renovated in 2018. It is zoned C-2. This property was on the market for 10 months with an original asking price of $950,000. The net operating income was estimated to be $55,578 for the year of 2019, yielding an actual rate of 5.9%.

 



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