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More Sales Volume Ahead for NJ

EAST RUTHERFORD, NJ-'Life companies are back in the market, and there have even been a couple of non-TALF CMBS deals completed,' says Cushman & Wakefield's Andrew Merin.

By Alyson Grala | Updated on January 27, 2010

EAST RUTHERFORD, NJ- With $1.7 billion in closed transactions–counting deals larger than $5 million–real estate investment sales activity in the New York tri-state area suburbs through December 2009 remains approximately 60% off volume from 2008 and a staggering 86% below volume from 2007. Within this context, Cushman & Wakefield Inc.’s East Rutherford-based Metropolitan Area Capital Markets Group has closed 20 deals with a cumulative value of $751 million.

“Last year, sales fell due to a disconnect between buyer and seller, and a general lack of available financing,” says Andrew Merin, who heads the team with David Bernhaut, Gary Gabriel and Jose Cruz. “This year, the market has been hindered by a lack of property available for sale. We are seeing a significant amount of capital out there from many sources, including wealthy individuals, raised funds and foreign investors. It is frustrating–they have the money but no place to put it.”

Merin notes that the limited trading taking place in 2009 in many instances included assumable financing. Sellers that transacted in 2009 have either accepted the reality of the market or have been faced with an absolute need to dispose of a particular property. “In many cases, properties are distressed,” he tells GlobeSt.com. “In others, the sale stems from the end of a fund or the need for investors to rebalance their debt and equity ratios.”

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