Some investors are actually selling off distressed multi-family assets they have held for a long time, and moving to buy stable triple-net leased commercial properties, noted Rob Holland, president of Kislak. He and Gambuzza said that many property sellers are looking to take advantage of 1031 property exchange deals to defer capital gains taxes, which are slated to rise to 20% next year. Gambuzza also noted that even distressed commercial properties have gained in appeal because of the “lack of alternatives” for investors.

Some panelists noted that while multifamily rental building sales has been the brightest sector for some time now, prices are starting to flatten.

Moderator Steve Santola of Woodmont Properties asked when there might be a comeback for condominium values. Gambuzza said, “There will eventually be a comeback, but we’re stuck in a stalemate with condos right now.” Peter Sibilia of JP Morgan Asset Management said, “Where there was once incredible velocity, we are just not seeing buyers for condos priced $1.3 million and up, with the 11 foot ceilings, and the wine cellar and all the bells and whistles the way we were.”

However, Debra Tantleff of Roseland Property Company, which has changed the face of downtown Morristown with mixed-use condo development as well as rental apartments, said corporate relocation continues to produce a steady flow of buyers who “require a high-class quality of living.” Properties developed in proximity to mass transit centers, offering the amenities of a downtown lifestyle, appeal to young professionals and “down-sizers,” she said.

Brian Whitmer, a director of Cushman & Wakefield, noted that Toll Brothers has had recent sales success in Hoboken with a building that opened across from its existing Hudson Tea condo tower. He noted another building in Edgewater was recently awarded a loan after condos were assessed at equivalent value to rental units by the lender.