As we’ve written recently, the New Jersey real estate market is booming with activity right now. Northern New Jersey, in particular has become a center of development due to its close proximity to Manhattan. From Millenials looking for a starter apartment, to Gen Xers looking for more space, to Baby Boomers looking to downsize, northern NJ represents an affordable option to what can be found on the other side of the Hudson River. Sharestates has cultivated relationships with New Jersey real estate developers over the years and has funded many projects from ground-up construction to fix-and-flip renovation projects.
Sharestates Real Estate Activity in Northern New Jersey
- Sharestates has funded 524 Northern New Jersey loans to date for a total funded volume of $281,425,450
- 354 of the loans funded were for residential properties
- 13 of the loans funded were for mixed-use properties
- 89 of the loans funded were for multi-family properties
- 43 of the loans funded were for commercial properties
- 25 of the loans funded were for land deals
- Average loan size: $900,625
- Average loan to value (LTV): 65%
- Average renovation budget: $341,684
- Average after repair value (ARV): 53% or $2,047879
Residential Project Success Stories
The first residential project presented below successfully underwent construction for 2 individual units. The borrower intends to complete the build out and sell the property once construction is complete or refinance into a conventional loan. This was ground up construction from a parcel of land. The borrower structured the loan into two draws of capital over the course of the construction period, which included flooring, electrical, plumbing, HVAC, windows, doors, cabinetry, tiles, bathroom fixtures and more.
- Appraised value: $100,000
- Loan amount: $190,000
- LTV: 70%
- After-repair value: $350,000
- ARV: 54%
This residential property is located in Paterson,New Jersey. The town of Paterson is in Passaic county which is considered a part of the New York metropolitan area. This area is about 21 miles outside of Midtown Manhattan and has a median home value of $241,000. The median list price per square foot in Paterson is $127, which is significantly lower than the New York-Newark-Jersey City Metro average of $272.
The next northern New Jersey real estate project success story funded by Sharestates was an 8-unit residential/1-unit commercial property.The borrower previously acquired and recently renovated the property. The borrower intends to refinance the property, pull out equity and pursue new opportunities after completion. The property is now fully occupied with tenants and the apartments have been fully renovated.
- Appraised value: $950,000
- Loan amount: $848,000
- LTV: 79%
- After-repair value: $1,260,000
- ARV: 67%
The multi-use building is located in Union City, New Jersey. This city is located in Hudson County, bordering Hoboken and Jersey City. The commute into NYC’s Port Authority is an average of 20 minutes. A current surge of houses have been sold to Millennials who are making their way there. According to Zillow.com the median home value is $407,000 and home values have gone up over 15% in the past year. Zillow predicts they will rise 7.9% in the next year.
If you have a project that you would like to submit to Sharestates for consideration, click here. Sharestates is now funding loans in 46 states Nationwide.