NEWARK, NJ−At next week's 3rd annual RealShare New Jersey Opportunities Breakfast, top commercial real estate players will discuss the “opportunities” for development and investment - which panelists are telling GlobeSt.com in advance of their remarks - are available across the spectrum right now.
Steve Santola of Woodmont Properties, whose company has three mixed-use properties in active development, said he will offer examples of potent opportunity in that sector for developers: “At the newer communities that we are opening we are seeing multifamily rents out-performing pro formas that are only a year or two old. Demand is super-strong and we are seeing a little bit more receptivity in some towns towards mixed-use redevelopment.”
Jose Cruz of HFF, who will bring the investment sales point of view to the May 29 event at The Newark Club, said his company is in the midst of handling the sale of a multi-family development in Hoboken that has seen “tremendous” interest. The apartment complex will soon change hands for what Cruz says is a record cap' rate – “sub 4%.”
Cruz sees significant opportunities across the property sectors – including the office market, which has for so long been weak in New Jersey.
“The good news is the capital pool is deep today,” says Cruz. “You have a range of buyers - not just one or two or three groups, but a wide range. With the stock market at an all-time high, the economy having really come back, there is capital, out there – local, regional and international.”
He cited the sale of Wyndham Worlwide's net-leased office at 22 Sylvan Way by Mack-Cali to Griffin Capital last month for $96.6 million – or $400 per square foot.
“There were six groups in the final round of a very heated marketing process– at that price level, which is remarkable,” says Cruz. “It really shows you the depth of the capital.”
HFF is also about to close on an industrial portfolio selling in the $100 million range, Cruz says. Earlier this year, it sold Wilson Associates' portfolio of industrial properties in The Meadowlands to JP Morgan Chase for $50 million, a price equating to nearly $100 per square foot.
“For quality property, there is strong pricing today across the board,” he says.
David Simon of Massey Knakl Realty will moderate the panel in which Santola and Cruz will participate. Other panelists are from Summer Street Advisers, NorthMarq Capital and KABR group.
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