Newark NJ Multifamily Risks & Rewards

[Ryan Daniher]

Newark, New Jersey has become a popular location for investors seeking high returns in the Northern NJ Sub-Market of NYC. In this article, I will talk about some of my recent aha moments in regards to Newark investing. 

Some of the appeals that many investors find are high cash on cash returns, large amounts of Section 8 tenancy, and even considerable appreciation through value add properties. Considering that Newark is 25 minutes from Manhattan and close to an International Airport Hub, the City has seen a lot of redevelopment in the past 10 years.

Two particular locations that have seen tons of action, high equity appreciation, and are poised for continued growth over the next ten years are the Ironbound Section, Downtown University Heights, and North Newark near Branch Brook Park in Forest Hill. 

Some major improvements and big players have entered these locations. In Downtown Newark, there is the Museum of Art, New Jersey Devils Arena, New Jersey Institute of Technology, Audible Headquarters, Rutgers Business School, Seton Hall Law School, New Jersey Performing Arts Center, and throughout the years this location will only continue to improve! The East Side of Branch Brook Park is well known for its recently high appreciation rates. Along the Passaic River runs Route 21, connecting to 280 and taking you straight into Jersey City. As a major gateway is so close to NYC, you can expect the flow over from Jersey City/Hoboken into Newark to continue. Ironbound has become a hot spot for young professionals, new restaurants and well-manicured streetscapes provide for a hustle-bustle of activity! Along the Passaic River are parks, tons of great restaurants, and Route 95 is just a few minutes away. Right across the River is Harrison, home to the Red Bull Arena and a part of Hudson County you want to keep an eye on! All of these locations have proximity to Newark Penn Station, another hub of travel all along the East Coast. From these locations, you are less than a 30-minute commute to NYC. 

Please share any comments/ideas/stories you have about Newark NJ! Looking forward to connecting with more people in the area who see this as a great investment.