Family-Owned Apartments in Somerville and New Brunswick Sold for $17.5 Million

Somerville and New Brunswick have witnessed the sale of two longstanding apartment communities, totaling $17.5 million.

In April, the Lexington and Jefferson Apartments in Somerville were sold for $11.9 million.

These properties, located off Mountain Avenue opposite Immaculata High School, had been under the same family's ownership since their construction over 60 years ago.

The six-story Lexington comprises 54 units, while the Jefferson offers 64 garden-style apartments.

Both were built in the early 1960s.

The buyer, Lexington Residences 2, is affiliated with Pentaurus Properties of Mountainside, a company with a portfolio spanning Florida and New Jersey, including properties in North Plainfield, Plainfield, and Summit.

In May, the same family sold the Century Apartments on Easton Avenue in New Brunswick for $5.62 million.

This four-story building, constructed in 1969, houses 38 units.

The purchaser, Century Apartments LLC, is part of Penn Properties Management based in Millstone Township.

The Morristown office of Berkadia represented the sellers in both transactions.

According to Trevor Fiebel of Berkadia, "These multi-generational family assets are highly coveted by the investor community, consistently generating an overwhelming amount of interest."

He noted the challenges sellers face due to tax implications and emphasized Berkadia's role in facilitating a tax-efficient exit strategy for the family.

These sales reflect a broader trend in the region's real estate market.

In December 2024, the benchmark price for single-family homes in New Brunswick surged by 14.4% compared to the previous year, reaching $327,600.

Apartment prices also saw a significant increase, rising by 13.9% to $294,500.

Despite a modest 1.5% year-over-year increase in home sales, the market remains robust, with demand outpacing supply.

These transactions underscore the strong demand for well-located, high-quality multifamily assets in suburban markets like Somerville and New Brunswick.

As property values continue to rise, such sales highlight the evolving landscape of the local real estate market.