LIVINGSTON, NJ—Multifamily investments are bringing the heat, from the region's in-demand urban downtown districts to the picturesque highland and coastal regions, according to Gebroe-Hammer Associates. In June, the firm's market specialists recorded 16 sales totaling more than 1,290 units that sold for more than $181.42 million.
“Multifamily transactions are certainly not showing any signs of deceleration,” says Ken Uranowitz, Gebroe-Hammer president. “June turned out to be a chartbuster for us, averaging a record four sales per week. And of the 16 deals we closed, three were portfolio sales representing a total of 967 units.”
The properties spanned New Jersey's Bergen, Essex, Hudson, Monmouth, Morris, Ocean and Passaic counties, as well as Pennsylvania's Lehigh Valley and Philadelphia submarkets. Asset classes ranged from a two-property 532-unit value-add South Jersey/Pennsylvania package to pre-war-era midrises poised for repositioning in bustling city-center neighborhoods.
“Today's multi-family investment environment remains quite robust. Demand is still way off the charts, especially for properties in high-barrier locations primed for value-add opportunities, most commonly associated with long-term owners who find themselves at a crossroads,” says Uranowitz. “These owners recognize that in order to vie for tenants in the region's high-end/transit-accessible neighborhoods, they must consider implementing their own capital improvement programs or take some 'chips' off the table in this highly competitive market. Understandably, original owners and developers are opting for the latter at a time when new development remains active, borrowing costs are low and tenant demand is keeping up.”
Gebroe-Hammer's midyear benchmarks follow a strong first and second quarter. In January, the firm's market specialists arranged the $130 million sale of Nob Hill in Roseland for $361,111 per unit and the $100 million sale of Cedar Wright Gardens in Lodi for $155,763 per unit.
LIVINGSTON, NJ—Multifamily investments are bringing the heat, from the region's in-demand urban downtown districts to the picturesque highland and coastal regions, according to Gebroe-Hammer Associates. In June, the firm's market specialists recorded 16 sales totaling more than 1,290 units that sold for more than $181.42 million.
“Multifamily transactions are certainly not showing any signs of deceleration,” says Ken Uranowitz, Gebroe-Hammer president. “June turned out to be a chartbuster for us, averaging a record four sales per week. And of the 16 deals we closed, three were portfolio sales representing a total of 967 units.”
The properties spanned New Jersey's Bergen, Essex, Hudson, Monmouth, Morris, Ocean and Passaic counties, as well as Pennsylvania's Lehigh Valley and Philadelphia submarkets. Asset classes ranged from a two-property 532-unit value-add South Jersey/Pennsylvania package to pre-war-era midrises poised for repositioning in bustling city-center neighborhoods.
“Today's multi-family investment environment remains quite robust. Demand is still way off the charts, especially for properties in high-barrier locations primed for value-add opportunities, most commonly associated with long-term owners who find themselves at a crossroads,” says Uranowitz. “These owners recognize that in order to vie for tenants in the region's high-end/transit-accessible neighborhoods, they must consider implementing their own capital improvement programs or take some 'chips' off the table in this highly competitive market. Understandably, original owners and developers are opting for the latter at a time when new development remains active, borrowing costs are low and tenant demand is keeping up.”
Gebroe-Hammer's midyear benchmarks follow a strong first and second quarter. In January, the firm's market specialists arranged the $130 million sale of Nob Hill in Roseland for $361,111 per unit and the $100 million sale of Cedar Wright Gardens in Lodi for $155,763 per unit.
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Steve Lubetkin
Steve Lubetkin is the New Jersey and Philadelphia editor for GlobeSt.com. He is currently filling in covering Chicago and Midwest markets until a new permanent editor is named. He previously filled in covering Atlanta. Steve’s journalism background includes print and broadcast reporting for NJ news organizations. His audio and video work for GlobeSt.com has been honored by the Garden State Journalists Association, and he has also been recognized for video by the New Jersey Chapter of the Society of Professional Journalists. He has produced audio podcasts on CRE topics for the NAR Commercial Division and the CCIM Institute. Steve has also served (from August 2017 to March 2018) as national broadcast news correspondent for CEOReport.com, a news website focused on practical advice for senior executives in small- and medium-sized companies. Steve also reports on-camera and covers conferences for NJSpotlight.com, a public policy news coverage website focused on New Jersey government and industry; and for clients of StateBroadcastNews.com, a division of The Lubetkin Media Companies LLC. Steve has been the computer columnist for the Jewish Community Voice of Southern New Jersey, since 1996. Steve is co-author, with Toronto-based podcasting pioneer Donna Papacosta, of the book, The Business of Podcasting: How to Take Your Podcasting Passion from the Personal to the Professional. You can email Steve at [email protected].
