Gebroe-Hammer Associates Closes 320 Multi-Family Units in Two Essex County Property and Note Sales
Distressed Real Estate Portfolio Bankruptcy and Note Sales Involve Six East Orange Properties.
- New York, NY (1888PressRelease) October 15, 2010 - As anticipated, a wave of bankruptcy and note sales is now hitting the multi-family 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 highly complex distressed sale of an East Orange, N.J. multi-family portfolio in bankruptcy, comprised of 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.
Among the record 46 deals completed by Gebroe-Hammer so far this year, the firm's brokerage professionals also have orchestrated more than $86.65 million in 23 distressed debt and note sales.
David Oropeza, executive vice president, was retained as the exclusive broker by the seller/debtor, who was in Chapter 11 Bankruptcy, to market the distressed properties last year. This atypical transaction required Gebroe-Hammer to conduct a Section 363 sale in accordance with a U.S. 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, the lengthy process of obtaining an array of permits and occupancy certificates required to comply with local municipal approvals and close title was completed.
"A sale of this caliber, which is one of New Jersey's most complicated this year, requires highly specialized knowledge and the necessary resources and relationships to market the property and complete the sale in a timely, satisfactory manner," said Oropeza, a 24-year multi-family brokerage industry veteran, who finalized the deal within 10 months of being appointed exclusive broker.
The buyer, a private investment group, acquired the mix of high-rise and mid-rise apartment buildings located at 106, 120, 158 and 179 South Harrison Street near the main shopping district. All are within one block of the East Orange train station. The four buildings, constructed in the 1920s, will undergo a comprehensive renovation to bring each complex up to competitive market standards.
Legal counsel was provided by Allen Popowitz, Esq., of Brach Eichler LLC of Roseland on behalf of the seller/debtor; Richard Kelin, Esq., of Feinstein, Raiss, Kelin, and Booker of West Orange on behalf of the buyer; Richard Trenk, Esq., of Trenk, DiPasquale, Webster, Della Fera & Sodono, P.C., who represented the bankruptcy interests of the seller/debtor; and Mark Slama, Esq., of Windels, Marx, Lane & Mittendorf, LLP of New Brunswick on behalf of the lender.
"The collective cooperation and expertise of the entire team, and related federal and local agencies, facilitated this multifaceted, complex transaction," said Ken Uranowitz, Gebroe-Hammer's managing director. "Were it not for their extraordinary efforts, and those of David Oropeza, who spearheaded and meticulously oversaw this entire process from beginning to end - including his repeated physical attendance at every municipal inspection of all four buildings and each unit of the 270 units by the various departments within the municipality - this deal would never have made it to the closing table."
Within days of closing the South Harrison Street bankruptcy sale, Oropeza represented the buyer, a long-time Gebroe-Hammer client, in the sale of 50 nearby units at 10 S. Grove St. and 242 N. Oraton Parkway. Legal counsel was provided by Richard Kelin, Esq., of Feinstein, Raiss, Kelin and Booker on behalf of the buyer.
These latest transactions punctuate another recent four-building distressed debt and property sale, on behalf of a prominent New York bank, involving a total of 320 units along South Harrison and Prospect streets. As the exclusive broker, Oropeza represented the sellers and buyers in the $13.352 million trade.
Gebroe-Hammer Associates is New Jersey's dominant, most experienced commercial real estate brokerage firm specializing in multi-family, retail and office property investment sales. With a concentration on suburban and urban high-rise, mid-rise and garden-apartment properties, the firm also markets mixed-use and free-standing office and retail properties throughout New Jersey, New York and Pennsylvania.