31-Unit Apartment Building Sells for $11.2M in Chatham, New Jersey
A renovated 31-unit multifamily property in Chatham, New Jersey has traded for approximately $11.2 million, highlighting continued investor interest in well-located suburban apartment assets across North Jersey.
The property, known as Chatham Arms, is located at 49 South Passaic Avenue in downtown Chatham and recently underwent upgrades prior to the transaction. The buyer, listed as Cornerstone 2025 LLC, acquired the asset as part of a Section 1031 exchange, allowing the investor to defer capital gains taxes by reinvesting proceeds from another real estate sale.
The deal closed following a marketing period of roughly 30 days and reflects strong demand for stabilized multifamily properties in affluent suburban communities within commuting distance of New York City.
Investor Demand for Suburban Multifamily
Suburban multifamily assets in Northern New Jersey have attracted increasing attention from investors seeking stable rental income in supply-constrained housing markets.
Communities such as Chatham benefit from several factors that support long-term apartment demand:
• proximity to New York City employment centers
• strong public transportation access
• high household income levels
• limited new housing supply
These characteristics have helped maintain strong occupancy levels and stable rent growth across many suburban markets.
Strategic Location
Chatham is located in Morris County, one of New Jersey’s most affluent suburban regions.
The borough offers commuter rail access to Manhattan via NJ Transit’s Morris & Essex Line, making it attractive for professionals working in New York City and nearby employment centers.
Properties within walkable downtown areas such as Chatham often command strong investor interest due to their proximity to restaurants, retail, and transit infrastructure.
Final Thoughts
The Chatham Arms transaction illustrates continued investor appetite for smaller multifamily assets in high-income suburban markets.
While institutional investors often target larger apartment portfolios, private buyers and regional investors remain active in acquiring stabilized properties with long-term income potential.
As interest rates stabilize and housing supply remains constrained across many parts of the Tri-State region, suburban multifamily assets are likely to remain a core investment target.
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