1-12-18

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1,315 units span 7 New Jersey and 3 Pennsylvania Counties Gebroe-Hammer sets newbenchmark for year- end saleswith $231M inDecember transactions

ISSUE HIGHLIGHTS Volume 30, Issue 1 January 12 - 25, 2018

2018 FORECAST N 7-21A

greater in 2018 thanks to the new tax law, which lowers the deductibility of residential prop- erty taxes and mortgage inter- est. Current renters who were considering home purchases will remain in place and keep occupancy rates AND rents at very healthy levels in the fore- seeable future. Unfortunately, however, this will create an even greater imbalance of the supply/ demand dynamic in an already undersupplied marketplace.” In NJ’s Northern and Central metros alone, Gebroe-Hammer recorded more than $81 mil- lion in sales involving seven small-to-mid-sized apartment buildings and garden-style complexes. The 300+ units spanned Bergen, Essex, Union, Monmouth and Middlesex coun- ties. In Southwest Jersey, the Gebroe-Hammer team orches- trated two sales encompassing more than 200 total units. “The more things change, the more they remain the same in NJ. Institutional investors have made tremendous inroads That steadfast commitment to the borrower’s success has cemented their status in the financing industry as one of the largest hard money lenders in the United States, surpassing $3 billion in closed loans. “The reason for our success is simple,” said Kevin Wolfer , CEO of Kennedy Funding Financial, the direct private lender based in Englewood Cliffs. “When traditional lend- ing institutions tell borrowers no, we find a way to tell them ‘yes’. We’ve bucked the rigid models which have denied so many the opportunity to suc- ceed.” The firm built its lending business on providing creative solutions for funding difficult properties and challenging scenarios. According to Wolfer, a bank or other traditional lending institution has rigid criteria regarding the borrower and the type of deal which can disqualify less-than-perfect ap- plications almost immediately, even if the opportunity they want to fund has the markings

with strategic acquisitions that have mostly focused on ‘tro- phy’ buildings while long-time, multi-generation private own- ers have held on to their class B properties, making few, if any, modernization upgrades to retain historically stabilized oc- cupancies and rents,” said Ura- nowitz. “Both recognize that the tides have been gradually changing, with the latter en- tertaining the idea of shedding their long-held assets in lieu of implementing substantial capi- tal improvements. As a result, there is a renewed emphasis on value-add acquisitions posing significant rent appreciation – some as high as $200 to $300 per unit, per month on turn- overs – to yield a fairly rapid return-on-investment.” This trend extends across the Delaware River to the ever- strengthening Greater Philadel- phia metro, where Gebroe-Ham- mer finalized sales encompassing over 775 multi-family units and 5,500 s/f of commercial space last month. The properties spanned of success. “Borrowers who need money fast, or who have a great op- portunity and simply cannot find the funding available from traditional sources are no lon- ger cut off from consideration for a hard money loan. They may be straddled with a problem property, faced with a bad credit history or bankrupt- cy, or may have a partnership that has gone sour,”Wolfer said. “If an opportunity can stand on its own legs, it doesn’t matter if the borrower has a blemish on his or her record.” Kennedy Funding Financial’s loans range from $1 million to more than $50 million and have a loan-to-value up to 75%. Kennedy specializes in bridge loans for commercial property for all purposes -- land acquisi- tion, development, workouts, foreclosures and bankruptcies. According to Wolfer, much of Kennedy Funding Financial’s growth can be attributed to their “creative” approach to lending and searching for solu- tions for borrowers which other

the counties of Philadelphia, Delaware and Northampton, in the growing Lehigh Valley submarket. The December sales come on the heels of another first for Gebroe-Hammer Associates in 2017: the closing of four sepa- rate sales that exceeded $100 million each. These included two North Jersey multi-family sales in one week totaling $230 million and 1,002 units: Ce- dar Wright Gardens in Lodi (Bergen County) and Nob Hill Apartments in Roseland (Es- sex County). A third in North Jersey included a portfolio sale with properties located throughout Hudson County. In addition, the firm also facilitated Philadelphia-based Post Brothers’ entry into the NJ market by arranging the $166 million sale of the Hud- son Waterfront’s Duchess in North Bergen. The transaction marked the official closing of a development agreement for the land parcel brokered by Gebroe-Hammer in 2014. n “We are willing to go the dis- tance for our clients, and that shows in our results,” Wolfer said. Fast turnaround is essential for many borrowers, and Ken- nedy Funding Financial has spent years refining their abil- ity to quickly close on the hard money loans they provide. Clos- ings take place within weeks instead of months, and in some cases, it can occur as soon as five days after application. “We can do this because we know just how time-sensitive hard money loans can be,” Wolfer said. “Our in-house management, coupled with appraisers and attorneys with round-the-clock availability, ensure that our sole focus is to secure a hard money loan for our clients as quickly as possible.” Kennedy Funding Financial can also point to its expertise in lending overseas as a contribu- tor to its success. A notoriously continued on page 18A

EW JERSEY/PENN- SYLVANIA — Ge- broe-Hammer Asso-

ciates , one of the region’s leadingmulti- family invest- ment broker- a g e f i rms , has set a new benchma r k for year-end sales, closing

COLLIERS INT’L. REPS. DERMODY PROPERTIES IN 401,008 S/F LEASE

Ken Uranowitz

over $231 million in transac- tions in December alone. The firm’s market specialists ar- ranged a total of 14 sales in- volving 1,315 apartment-rental units spanning seven New Jersey and three Northeastern Pennsylvania counties. “Multi-family properties con- tinue to be in extreme demand and deal velocity remains ac- celerative, setting the stage for a robust 2018,” said Ken Uranowitz , president and a multi-family brokerage veteran who has been with the firm, now marking its 43rd year, since its inception. “Demand will be even

2B

SAVILLS STUDLEY REPRESENTS JEFFERSON IN 237,000 S/F TRANSACTION

Kennedy Funding Financial reaches $3B loanmilestone ENGLEWOOD CLIFFS, NJ — For the past 30 years, the principals at Kennedy financial institutions simply can’t offer.

F u n d i n g Financ i a l have turned hundreds of commercial real estate loan applica- tions into ap- provals.

3C

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Kevin Wolfer

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Financial Digest:................................................ 3-5A DelMarVa.......................................................23-24A New Jersey................................................. Section B Pennsylvania.............................................. Section C

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