Bayonne 25-Unit Building Sells After 50-Year Hold

What Sold in the $6.13M Bayonne Deal?

The asset at the center of the $6.13 million Bayonne transaction was an under-development multifamily site at 90 Avenue E. A 25-unit building there was tied to a larger plan for 70 residences. The site was fully approved for a 70-unit Class A multifamily project and included a 20-year Payment in Lieu of Taxes agreement.

CBRE announced the sale on December 15 and described the property as a residential location in Bayonne, NJ. The firm marketed the site for seller EOM, with Fahri Ozturk, Richard Gatto, and Zach McHale representing the assignment. In other regional property activity, a Richmond firm acquired a Hanover County logistics center with 552,587 square feet of warehouse space for $128 million.

Transaction Details

The reported price was $6.13 million. CBRE's announcement cited a brokered figure of $6.1 million.

The buyer identity was not publicly disclosed beyond a description of a Hudson County-based private developer. That buyer was represented by Hudson Realty.

Construction progress was roughly midway at the time of sale. This underscored that the transaction involved an active development rather than a completed apartment property.

What Is the 25-Unit 175 W 7th Project?

Separate from the 90 Avenue E sale, Bayonne’s 175 West 7th Street project is a larger approved multifamily development in the Constable Hook-Bergen Point section. It sits at the corner of John F. Kennedy Boulevard.

The visible First Ward site is beside the northbound Route 440 entrance near Ideal Window Manufacturing. The land is currently improved with a small garage and parking lot.

Planned Building

Approved plans call for a five-story, 56-unit luxury redevelopment. The project totals 76,362 buildable square feet on a 60,507-square-foot parcel. Similar markets are weighing policies like rent caps as officials try to balance tenant protections with the need to sustain new housing development.

The building, known as The Pointe Bayonne, includes modern finishes. Plans also feature at least some two-bedroom, two-bath layouts.

Parking includes 56 garage spaces plus seven on-street spots.

Approval Status

Bayonne’s Planning Board granted preliminary and final major site plan approval with bulk variance relief in December 2016. The project was later supported by a 25-year tax abatement.

Who Owned the Bayonne Site for 50 Years?

Bayonne’s former Military Ocean Terminal, not a private owner, controlled the site for roughly 50 years before the property entered its modern redevelopment phase.

That period reflected federal ownership tied to the terminal’s operating life, which ended in 2000.

No evidence shows that a single private individual or company held the specific 25-unit building site for five consecutive decades.

Transfer After Closure

The turning point came with city acquisition of the 430-acre former terminal after the facility closed.

From 2000 forward, Bayonne owned the larger property and spent about 15 years holding it before selling sections to developers.

Various parcels were later transferred to multiple buyers, including land within Harbor Station South.

As a result, the recent 25-unit building sale followed a long stretch of public control, first federal and then municipal ownership.

How the Financial Agreement Shapes Development

Financial terms now define how redevelopment proceeds at the former Caschem site.

A 25-year PILOT replaced the developer’s 30-year request, tightening municipal exposure while preserving tax incentives for construction.

The agreement sets payments at 10 percent of adjusted gross revenue in years 1 through 5, then increases that share to 13 percent by years 21 through 25. This revenue phasing lowers early costs and supports financing.

Element: PILOT term

Effect: 25 years, not 30

Element: Early tax phase-in

Effect: 0 percent for years 1 through 10

A separate annual resolution directs a voluntary PILOT portion to the school district before broader city allocation.

That binding mechanism adds oversight, protects education funding, and gives the project a more predictable cost structure over time for lenders.

What This Sale Says About Bayonne Multifamily

Record-setting pricing for a pre-war multifamily asset suggests that Bayonne has moved into a more competitive investment tier within Hudson County.

The $207,000 per-unit result, paired with a contract in the second week and a closing at 95% of ask, points to unusually strong investor appetite.

That pattern aligns with broader Hudson County activity, where multifamily buyers continue bidding despite higher borrowing costs.

Pressure Builds on Asset Values

Rising Bayonne home prices and full-price activity in ZIP 07002 help support apartment valuations.

They also reinforce a location premium for well-placed buildings near Kennedy Boulevard and regional highway access.

New development at Bay 151 adds another signal.

Institutional-scale construction, premium amenities, and rents starting at $2,170 indicate confidence that Bayonne can absorb higher-quality multifamily product.

Assessment

The $6.13 million sale of 175 W 7th Street marks a significant transfer after five decades of ownership.

The approved 25-unit project, backed by a long-term financial agreement, positions the site for immediate multifamily development pressure in Bayonne.

The transaction underscores continued investor focus on smaller urban infill assets.

Tax incentives, entitled plans, and limited housing supply can quickly reshape neighborhood density, land values, and the pace of local residential construction.

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