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Trenton, NJ

HIGHLIGHTED AREAS

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The Opportunity

The capital of New Jersey, Trenton is slated to be the first area in the state for a large scale redevelopment of its downtown area and infrastructure. This, in conjunction with an influx of employment opportunities, has made Trenton a success in the making in the rental industry as people move into the city and need places to live closer to where they work. Highgrove plans to take advantage of this opportunity by acquiring properties around the city to create a cash flow portfolio with cap rates reaching 20%-50% on property acquisition costs.

Trenton has always had a strong rental market due to a larger number of renters than homeowners. There are a large number of available investment properties such as duplexes and triplexes, as opposed to largescale apartment complexes and buildings. These properties are typically wholly-owned by an investor or one of the units may be occupied by the owner and the additional units rented. This in turn has kept the rental market strong in the area. Additionally, due to the lack of development space for multifamily structures, space is in demand, reducing the risk of over-saturation of rental units in the area.

Trenton, NJ

Trenton is the capital city of the state of New Jersey and the county seat of Mercer County. Trenton was briefly the former capital of the United States. As of the 2010 United States Census, Trenton had a population of 84,913, making it the state's 10th-largest municipality. The Census Bureau estimated that the city's population was 85,181 in 2015.

Trenton at a Glance

PROS

  • Downtown redevelopment currently underway
  • Trenton Steel Corporation and LMT Mercer Group moving into city of offering 250+ jobs
  • Large increase in diversity with up to 40% expected to be of Hispanic origin
  • New high speed rail under construction through the city

CONS

  • Lower than average employment numbers
  • Slow increase in home values compared to national averages
  • Slower widespread commercial development projects

Housing Inventory & Average Sales Prices

Trenton has shown a healthy recovery in home values and a steady decrease of inventory making this the most opportune time to acquire properties in the area. The majority of the remaining inventory is comprised of lower-valued homes that require capital improvements homebuyers in the same price range could not afford to complete.

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Rentals in the Trenton Area

Trenton rents have maintained steady growth since 2009. In 2015, Two bedroom units averaged close to $1,500 per month and one bedroom around $1,150 - an increase of between 25-30% from 2009.
This is evident from the chart showing the rental rates climbing, with projections of continued growth.

Recent Acquisitions

370-1 & 370-2 Brunswick Ave.
Trenton, NJ

Bedroom: 5
Bathroom: 2
Sq Ft: 2,028
Year Built: 1882

For more information, please

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