A real estate tax break on the Biden administration’s chopping block is at the center of a $23 million multifamily deal in New Jersey.
Bergen County-based Hornrock Properties has sold a 62-unit luxury apartment building at 15 West Johnson Avenue in Bergenfield for $22.5 million, business brokerage firm Kislak Realty announced Thursday.
Kislak declined to name the buyer, identified only as A. Hackensack, LLC, but confirmed the seller was Hornrock, which developed the building. Andrew Scheinerman and Robert Squires of Kislak brought in Hornrock and the buyer respectively.
Known as Bella in Bergenfield, the property was completed in 2020 and includes 57 one-bedroom apartments and five two-bedroom units, with asking rents starting at $2,250, according to Apartments.com.
The average unit size is 869 square feet, according to Kislak, and building amenities include covered parking, a fitness center, a rooftop terrace, a lounge, and a work-from-home lobby.
The buyer was able to purchase the building in part through a 1031 exchange, which allows real estate investors to defer capital gains taxes on the sale of investment property if the sale proceeds is used to make a subsequent real estate purchase.
In this case, Kislak’s Squires said in a statement that the buyer had sold a former garden-style apartment complex in Hackensack; the purchase of the Bergenfield building completed the exchange.
During his presidential campaign, Joe Biden offered to eliminate 1031 exchanges, also known as “similar type” exchanges, for investors with annual revenues over $400,000, and again called for https://therealdeal. com/2021/04/29/what-bidens-first-100-days-intended-for-real-estate/ their partial elimination after taking office.
The real estate industry strongly disagrees on the subject.