"Urban hubs and smaller-to-mid-sized existing properties are attracting the interest of multifamily housing investors," he says. "In the current economic environment, these types of multifamily acquisitions are considered low-risk by lenders due to consistent, steady cash flow associated with a rental building. Buyers recognize the ability to enhance the property's overall performance over time."
The largest trade was the nearly $3-million sale of Oliver Plaza Apartments, a 58-unit mid-rise complex in Newark's Weequahic neighborhood. Gebroe-Hammer EVP David Jarvis represented the seller, Elizabeth Avenue Associates Corp., and procured the buyer, 469 Associates, LLC.
Located in Newark's southernmost neighborhood at 469 Elizabeth Ave., the five-story brick-façade building features a mix of one-, two- and three-bedroom apartments. The property also offers access to bus, rail and highway routes, including Newark Penn Station, the New Jersey Turnpike, Garden State Parkway and Route 78.
According to Jarvis, the buyer plans to renovate the kitchens, bathrooms and common areas throughout the entire building. "This property's rents were significantly below the area's market rates," he relates. "The buyer recognized the potential to add greater value to the asset through capital improvements and the addition of some new amenities."
In addition, Jarvis, along with executive vice president David Oropeza and Greg Pine, senior vice president, closed the $1.2-million sale of 245 Reynolds Ter. in the City of Orange. Nearly 100% occupied at the time of the sale, the 17-unit garden apartment complex features 11 two-bedroom and six one-bedroom layouts. It is located near the Garden State Parkway and Route 280.
Gebroe-Hammer executives Avi Oren and Steven Tenenbaum orchestrated the $600,000 sale of 1300 Fulton St. in Rahway. The two-story garden apartment building was fully occupied at the time of sale. In Hudson County, Gebroe-Hammer closed three transactions with a total of 47 nights for a combined $3.2 million.
In Philadelphia, the firm arranged the $1.4-milion sale of the Loretta Arms Apartments, located at 1901-13 Faunce St. in northeast Philadelphia. Eli Rosen, senior vice president, represented the seller and the buyer, both of whom are long-time Gebroe-Hammer clients. Centrally located within the Rhawnhurst neighborhood, the two-and-a-half-story, 30-unit complex offers both studio and one-bedroom units.
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