Gebroe-Hammer Associates Arranges 10 Multi-Family Investment Trades in 22 Days

Top Quote 429 Total Units in North Jersey Sell for $27.66 Million. End Quote
  • New York, NY (1888PressRelease) September 09, 2011 - Gebroe-Hammer Associates reports investors have gained renewed confidence in Northern New Jersey's multi-family sector in the wake of Wall Street's latest jitters, as demonstrated by the 10 recent trades orchestrated by the Livingston, N.J.-based firm in a 22-day timeframe. The $27.66 million in total sales involved 429 units predominantly located throughout Bergen, Essex, Hudson, Union and Middlesex counties.

    "This recent flurry of activity further emboldens the new residential way of life in America as we evolve into a 'renter society,' thereby creating unprecedented investment demand for this type of asset," said Ken Uranowitz, managing director. "The dream of owning a home has turned into a nightmare as foreclosures, affordability issues and extremely tight credit standards have driven the population toward apartments. Until home values stabilize and confidence in a jittery economy returns, renting is, and will be well into the foreseeable future, the new normal in residential living."

    The three largest recent transactions involved a 108-unit complex in Middlesex County and a total of 208 units in Newark. According to Joseph Brecher, executive vice president, suburban garden-apartment complexes and urban mid- and high-rise buildings are generating similar levels of investment interest.

    "Northern New Jersey's strong tenant population and mass transit network, which allows people to move easily, whether it be for work or leisure, are the foundation for overall occupancy rates that exceed the national average," he explained. "These two factors translate into stable, predictable investment returns over the long-term."

    This level of predictability also has resulted in steady capital flow from lenders to finance multi-family acquisitions at Eisenhower-era interest rates, particularly those involving existing Class-B and Class-C properties. "Despite the renaissance of New Jersey's Gold Coast, where there is a high concentration of new Class-A product, the focus of the multi-family investment market is on the post-war-era buildings owned for decades by families," added David Oropeza, executive vice president. "Today's investors recognize the rent-potential associated with repositioning these properties, through renovation programs targeting common areas, kitchens and baths, to realize even greater income gains."

    In addition to the Middlesex County and Newark transactions, Gebroe-Hammer's brokerage professionals arranged the sale of 22 apartment-rental units and 3 commercial units in Lodi; 9 units in Nutley; 23 units in Union City; and 16 apartment-rental and 2 commercial units in Jersey City. In addition, the firm handled the note sale on 13 units in Plainfield.

    Established in 1975 by industry icons Mel Gebroe, chairman, and the late Morris Hammer, Gebroe-Hammer Associates markets suburban and urban high-rise, mid-rise and garden-apartment buildings as well as mixed-use and free-standing office and retail properties. The firm's market specialists are active throughout New Jersey, New York and Pennsylvania, including Philadelphia. Widely recognized for its consistent sales performance, the firm is an eight-time CoStar Power Broker.

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