EAST ORANGE, NJ-As anticipated, a wave of bankruptcy and note sales is now hitting the multifamily investment market at a time when supply is short and demand is high for virtually all apartment-rental building classes, according to Gebroe-Hammer Associates. Most recently, the Livingston-based firm closed a distressed sale here that involved a multifamily portfolio in bankruptcy. The portfolio included four buildings with 270 total units valued at $10.5 million, as well as a $1.3-million note sale of 50 units within the city.

David Oropeza, Gebore-Hammer’s executive vice president, was retained as the exclusive broker by the seller, which was in Chapter 11 bankruptcy, to market the distressed properties last year. The transaction required the firm to conduct a Section 363 sale in accordance with the US Bankruptcy Court-approved order. The existing lender, Fannie Mae, and numerous other creditors and their respective attorneys were among the involved parties.

Disposition of the properties included securing more than 15 “as-is” non-contingent bids accompanied by non-refundable deposits. Once the contract was executed by the winning bidder, Oropeza obtained an array of permits and occupancy certificates that are required to comply with local municipal approvals and close the title.