8B — December 11 - 23, 2015 — New Jersey — M id A tlantic
Real Estate Journal
www.marejournal.com
N orthern N ew J ersey Transaction pace sets stage for an active December
Gebroe-Hammer locks up $170m in multi- family sales involving 1,500+ units in 14 Days L IVINGSTON , NJ — Anchored by swift mul t i - fami l y t rad - owner with little-to-no capital improvements.”
property-class category – from urban mid-rises to suburban garden-apartment communi- ties, have set the stage for an exceptionally active Decem- ber. Four of the properties are located in the Northern New Jersey submarket, which con- tinues to account for the high- est concentration of buildings sold by Gebroe-Hammer thus far this year. The remaining Garden State-based properties are in Middlesex and Camden counties. In Pennsylvania, a total of 324 units sold in the Pittsburgh metro area. “While it is quite typical for
closing activity to ramp up as the end of the year approaches, a majority of these properties barely hit the for-sale market and were quickly grabbed up by investors,” said Ken Uranowitz , president and a 40-year veteran of the firm. “Debt is cheap, cap rates are ultra-low and effective rent growth is at or above what was once historic benchmarks. While the looming question is ‘When will the Fed raise interest rates?,’ apartment buildings have been, are and will continue to be a sound, revenue-producing investment because rental living is the
new lifestyle of choice.” Investors are pursuing prop- erties that fall into a wide performance spectrum. At the one end, according to Uranowitz, is the typical asset “appreciation” opportunity. “Simply put, these proper- ties are well-maintained, in high-barrier-to-entry locations and have been updated over the years,” he said. “How- ever, they haven’t kept pace with submarket-wide rent increases defined by compa- rable communities in the area. Rent increases can easily be phased in at lease renewal or unit turnover by the new
The opposite end of the spectrum involves properties with value-add opportunities. Usually, these older properties have not been modernized or recently updated and have had the same owner for many years. “This sort of investment opportunity is quite common in the Northern New Jersey submarket, which has a high population density in terms of people and apartment build- ings,” said Uranowitz. “In this case, new owners imple- ment or expand upon capital improvements to achieve sig- nificant value-add potential in the form of rent appreciation and property repositioning.” The tenant and investor pools are seeking very similar characteristics when it comes to multi-family properties. Strategic location within a residential/commercial/retail corridor, proximity to schools and mass transit/major high- ways and access to regional cultural/leisure-activity ven- ues. On-site amenities, such as laundry facilities, play- grounds, fitness centers and basketball or tennis courts, are an “added bonus,” said Uranowitz. n Alfred Sanzari breaks ground on dual-branded Hotel at Glenpointe TEANECK, NJ — Alfred Sanzari Enterprises – one of New Jersey’s preeminent real estate developers, own- ers and managers – officially broke ground on a new 350- room dual-branded hotel at its mixed-use Glenpointe complex in Teaneck. The hotel will feature the Hampton Inn & Suites by Hilton and Home- wood Suites by Hilton brands, Hilton Worldwide’s select- service and upscale extended stay hospitality products. “This new hotel will bring additional lodging options to the region; generate numer- ous construction jobs and permanent hospitality-related positions; and produce long- term sustainable benefits for the Township of Teaneck,” said David Sanzari , Alfred Sanzari Enterprises’ president and CEO. The dual-branded hotel will be located near the corner of Glenwood Ave. and the off- ramp of I-95. n
ing dur ing t h e p a s t 10 months, G e b r o e - H a m m e r Associates orchestrated seven sepa- rate sales to- taling $170+
Ken Uranowitz
million and involving more than 1,500 units during a 14- day period in November. The combined sales of the New Jersey and Pennsylvania as- sets, which spanned every
A Tradition of Integrity.
A Passion for Perfection.
Gebroe-Hammer Associates
$333 Million • 1,270 Units North/Central New Jersey’s Most Prominent Q3 Sales
New Jersey’s dominant brokerage firm specializing in the sale of multi-family, retail, and commercial investment properties for private investors, REITS, and other institutional clients.
Gebroe-Hammer Associates Tel: 973.994.4500 • Fax: 973.994.9752 www.gebroehammer.com
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