“One particular area of heightened interest is East Orange,” says David Oropeza, managing director and the firm's urban market expert. “Investors are changing the property landscape by rehabbing and renovating prime-location buildings in order to attract a tenant base of young professionals.”

During the third quarter, Gebroe-Hammer's mid-to-high-rise and garden-style suburban property sales were concentrated within the high-barrier-to-entry markets of Bergen/Passaic counties in New Jersey as well as Pennsylvania's Philadelphia and Delaware counties. Supply remains the greatest constraint in these record high-demand markets, says Gebroe-Hammer managing director Joseph Brecher.

“Suburban locales have enduring investment appeal throughout economic peaks and valleys, and even more so now at a time when the job market has been holding steady. For this reason, supply is scarce and demand is at historic levels,” says Brecher. “These properties thrive over the long term because of their proximity to major metro centers and access to mass transit, both of which appeal to a mixed tenant pool of families and single millennials alike.”

Meanwhile, Central New Jersey – another suburban epicenter of multi-family investment activity – recorded its own share of significant transactions over the past three months. In total, four counties had 1,200 units sold in Jackson, Asbury Park, Long Branch, Bradley Beach and Highlands (Ocean/Monmouth), Franklin Township and North Plainfield (Somerset) and South River (Middlesex).

Philadelphia, which has one of the fastest growing millennial populations among America's largest cities, also includes one of the most diverse property-class mixes in the nation. This “melting pot” ranges from newly constructed high-rise buildings to recently renovated post-World War II mid-rises – all of which account for 209,987 units spanning 28 geographic concentrations. In recent weeks, Gebroe-Hammer arranged sales involving 160 total units throughout the city and reports that several prominent deals are in the pipeline.

“From the largest submarket of Center City, which has 18,320+ units, to the smallest – Olney/Oak Lane, which accounts for about 2,800 units – asking rents are expected to increase through year end as well as on an annualized basis through the close of 2018,” says senior vice president Eli Rosen and the firm's area market specialist.

“These projections, along with the potential to achieve greater appreciation with modest capital improvements at older existing properties, are only feeding the fever pitch citywide,” he added.

Steady gains in the US economy have resulted in net positives for the multifamily sector—will this wave continue for the foreseeable future? What's driving development and capital flows? Join us at RealShare Apartments on October 19 & 20 for impactful information from the leaders in the National multifamily space. Learn more.

LIVINGSTON, NJ–The multifamily market in New Jersey remains on an upward trajectory through the third quarter and into the final months of the year, with market fundamentals favoring apartment rentals, says Ken Uranowitz, president of Gebroe-Hammer Associates.

“Just when you think multi-family investments and apartment rentals may have reached their peak, you look at the numbers – which speak for themselves – and are struck by asking rents, occupancies, and per-unit pricing that continues to trend upward,” says Uranowitz. “Within multifamily investing, there is one constant theme – people will always need a place to live. Apartment-rental properties have – and will continue – to fill this basic need for every population demographic, from the working-class to affluent professionals.”

The Livingston, NJ-based firm, which specializes in multi-family properties, has closed 108 deals this year so far, totaling 9,664 units and more than $1.4 billion in sales. During Q3, Gebroe-Hammer achieved $402.29 million in sales, which include highest-price-per-unit milestones in submarkets like Hudson County, NJ's West New York and Union City. In total, the firm closed 10 separate transactions countywide during the latest quarter.

Similar to Hudson County, adjacent transit-village-dense counties like Union and Essex also are a focus of investment activity.

“One particular area of heightened interest is East Orange,” says David Oropeza, managing director and the firm's urban market expert. “Investors are changing the property landscape by rehabbing and renovating prime-location buildings in order to attract a tenant base of young professionals.”

During the third quarter, Gebroe-Hammer's mid-to-high-rise and garden-style suburban property sales were concentrated within the high-barrier-to-entry markets of Bergen/Passaic counties in New Jersey as well as Pennsylvania's Philadelphia and Delaware counties. Supply remains the greatest constraint in these record high-demand markets, says Gebroe-Hammer managing director Joseph Brecher.

“Suburban locales have enduring investment appeal throughout economic peaks and valleys, and even more so now at a time when the job market has been holding steady. For this reason, supply is scarce and demand is at historic levels,” says Brecher. “These properties thrive over the long term because of their proximity to major metro centers and access to mass transit, both of which appeal to a mixed tenant pool of families and single millennials alike.”

Meanwhile, Central New Jersey – another suburban epicenter of multi-family investment activity – recorded its own share of significant transactions over the past three months. In total, four counties had 1,200 units sold in Jackson, Asbury Park, Long Branch, Bradley Beach and Highlands (Ocean/Monmouth), Franklin Township and North Plainfield (Somerset) and South River (Middlesex).

Philadelphia, which has one of the fastest growing millennial populations among America's largest cities, also includes one of the most diverse property-class mixes in the nation. This “melting pot” ranges from newly constructed high-rise buildings to recently renovated post-World War II mid-rises – all of which account for 209,987 units spanning 28 geographic concentrations. In recent weeks, Gebroe-Hammer arranged sales involving 160 total units throughout the city and reports that several prominent deals are in the pipeline.

“From the largest submarket of Center City, which has 18,320+ units, to the smallest – Olney/Oak Lane, which accounts for about 2,800 units – asking rents are expected to increase through year end as well as on an annualized basis through the close of 2018,” says senior vice president Eli Rosen and the firm's area market specialist.

“These projections, along with the potential to achieve greater appreciation with modest capital improvements at older existing properties, are only feeding the fever pitch citywide,” he added.

Steady gains in the US economy have resulted in net positives for the multifamily sector—will this wave continue for the foreseeable future? What's driving development and capital flows? Join us at RealShare Apartments on October 19 & 20 for impactful information from the leaders in the National multifamily space. Learn more.