BAYONNE, NJ—AMS Acquisitions, a New York City-based real estate investment firm, has purchased the iconic Silk Lofts building in Bayonne, NJ, for $32.1 million, and plans to add more than one hundred new residential units to the luxury rental property.
AMS Acquisitions closed on the building on January 16th. The building, at 154 Avenue E, is the site of a former Maidenform factory that was developed into a modern luxury residential loft building in 2009 by developer Doug Stern of Stern Capital and Leon Cohen of CSR Group.
AMS plans to add an additional 125 apartments to the Silk Lofts site and construct at least two new buildings on the parking lots that surround the property.
The five-story building is one of the city’s most desirable rental buildings — offering a mix of 85 studio, one and two-bedroom apartments with modern finishes lifestyle amenities, and offering views of the NYC skyline and Bayonne Bridge. The building retains much of its original wood and brick detail, and features 12′ to 22′ ceiling heights.
“Silk Lofts’ location, apartment design and unique detail make it one of the most prominent and desirable buildings in Northern New Jersey,” says AMS Acquisitions co-principal Avi Abadie, who says rental prices in the new Silk Lofts building are expected to range from $1,800 a month for one bedrooms to $2,700 for two bedrooms, with studios starting around $1,500 to $1,600 a month.
AMS Acquisitions primarily invests in Manhattan, Brooklyn and Queens, but has recently begun to acquire well located, class-A assets in other growing neighborhoods surrounding the city as well. This is the company’s second Bayonne purchase. Last June AMS purchased a retail building at 563 Broadway for $1.075 million.
“The city of Bayonne is poised for tremendous growth as new developments continue to pop up and young professionals flow in from Manhattan,” says AMS Acquisitions co-principal Michael Mitnick, adding that his company’s mixed-use residential properties in Queens and Brooklyn have longer commuting times to Manhattan than Bayonne, which is a 25-minute train ride to downtown Manhattan. The building is located just three blocks from the 22nd Street Light Rail station, offering tenants an easy commute to both downtown Jersey City and Manhattan.
Redwood Realty Advisors’ Steven Matovski represented both sides in the transaction, while Jeremy Wernick of Redwood co-represented the buyer.
“Silk Lofts will benefit tremendously from the ever-changing landscape and revitalization of Bayonne,” says Matovski. “The quality of the asset, location, and option for future development made this an ideal opportunity for AMS.”