The Mint, a new 225-unit complex downtown, is at nearly 100 percent occupancy across its two buildings — and has been for sale for months.
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The rental complex has been listed for several months as “currently marketing” for sale by BlueGate, Partners, LLC. BlueGate is a “boutique real estate investment banking firm” with offices in New York City and Palm Beach, Fla. The firm has worked in the past with Jersey City-based Fields Grade Development, which partnered with The Slokker Group on The Mint.
On its website, BlueGate describes The Mint as “currently at 98% occupancy,” while the property benefits from a “very favorable” 30-year PILOT [more on that below] “without an affordability requirement.” A ribbon-cutting ceremony in May marked the completion of second phase, which at that time was leased up at 70 percent, according to a press release.
Last month, a spokesman for The Mint said “both buildings have reached stabilization and there are only 2 units to lease across both phases” but no word on why it’s for sale.
It’s not uncommon for developers to sell recently constructed properties to recoup their investment. For example, Capodagli Property Company, which has built at least four projects in Rahway, sold the 108-unit Meridia Water’s Edge in 2016 , two years after it began leasing, and did the same with the 88-unit Meridia Grand in 2011.
This report by Real Estate NJ from October 2022 — months before the second phase was completed — cited a projected sale “in the high $90 million to $100 million range.”
The Mint features two buildings: The south building, built in the first phase, features 116 units in a 5-story complex at 81 Monroe St., and the second phase, at 84 Monroe St., includes 109 units in a 6-story facility along Main and Poplar streets. Combined, the two buildings have almost 6,000 square feet of ground-floor commercial space, which includes the recently opened Wholly Cow Gelato Shop.
The city budget anticipates almost $3 million in PILOT revenue in 2023, including the first payment from The Mint of more than $112,000 for the first building. When developers filed an application for a 30-year PILOT in 2014, they estimated the $55-million development would generate a $360,000 payment in the first year, which would increase 3% annually.
The Mint’s first phase has been assessed for $9,895,900 since 2021, according to property records. Based on 2022 tax rates ($7.022 per $100 of assessed value), the property would generate almost $700,000 in property taxes under normal circumstances, broken down as follows:
- $326,564 – School taxes ($3.3 per $100 of assessed value)
- $261,251 – Municipal ($2.64 per $100)
- $96,583 – County ($0.976 per $100)
Previously, the approximately properties that made up the project, including the Parking Authority’s Lot B, were assessed for a combined $650,000, yielding a property tax bill of about $40,000.
Editor’s note: Thanks to reader Rick Salvo for the heads up on The Mint being marketed for sale.
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