Sold: Housing Assistance Program (HAP) Provides Rent Security in Rough Times

I was happy to represent the buyer, an experienced Newark investor, in this transaction. While it took many months to sort out and confirm incomplete data, things worked out well in the end.

Data from Costar…
On 5/6/2020, this 7,150 SF, 12-unit multi-family building at 388-398 W 4th Ave Newark, NJ 07107 was sold for $1,067,500. This property was listed at $1,155,000. This is a class C property that was 95% occupied at the time of sale. This property was on the market for about 9 months. There was a seller credit of $7,500 that will be used for property enhancement due to the properties condition at the time of sale. This deal was financed by the buyer. The buyer acquired the property because they plan to use it as an investment property. The buyer’s plan is to increase rent over time to get a return on the investment. Also, this property has Section 8 contracts that pay for a majority the tenant’s rent. The in-place net operating income was estimated to be $81,023.25 for the past 12 months, yielding an actual cap rate of 7.59%. The price, size and actual cap rate were verified with the listing agent and the buyer.

 



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