Mid Atlantic Real Estate Journal — Owners, Developers & Managers — July 27 - August 16, 2012 — 11A Mid Atlantic Real Estate Journal — Property anagement — February 10 - 23, 2012 — 3B
www.marejournal.com . arejournal.co
O wners , D evelopers & M anagers Design by Minno & Wasko Architects and Planners Construction progressing at Prism’s Parkway Lofts B any people are talk- ing about how tough e c onomi c t ime s housing is a great way to maintain consistent income levels. You don’t have to rely likely to be involved in crimi- nal activity. These tenants have a personal stake in the By Chris Cervelli, CCIM, Michael Cerve li R al Estate/Cervelli Management Corp. Prope ty Management in tough times M LOOMFIELD AND EASTORANGE, NJ— Construction progress- GENERAL CONSTRUCTION Commercial • industrial • Residential P ROPERTY M ANAGEMENT
HVAC • NETWORK • SOlAR pANEl iNSTAllATiON • SECuRiTy • CAmERA • SWimmiNG pOOl GROuNDiNG • FiREAlARm iNSpECTiON & iNSTAllATiON Contact: VINAY SHAH P: 201-488-6088 F: 201-488-6087 Email: shahelec@aol.com 123 Hudson St, Rear Bldg, Hackensack, NJ 07601 Fully Bonded & Insured License #11574 Even in these difficult times, owners of investment property can do well by main- taining their buildings at or above levels of compet- ing properties, conducting proper tenant screening, and enlisting the help of local assistance programs to refer qualified candidates. Founded in 1983, Michael Cervelli Real st te, he d- quartered in North Bergen, New Jersey, is acknowledge as one of Northern New Jersey’s most experienced agencies specializing in in- vestment real estate sales. Aimed at providing profes- sional brokerage services to private investors and finan- cial institutions involved in income-producing multifam- ily properties and shopping centers, the company has posted steadily increasing sales results. Michael Cer- velli Real Estate is known for its’ unparalleled reputation of honesty, integrity, and experi- ence in the investment real est te i dustry. Chris Cervelli, CCIM, Michael Cervelli Real Es- tate/Cervelli Management Corp. Q
es on PrismCapital Partners’ Parkway Lofts in Bloomfield and East Orange. The $90 million redevelopment proj- ect involves an industrial- to-residential adaptive reuse of the 115-year-old former General Electric Company property that signals Exit 148 for millions of New Jer- sey travelers each year. Six months after break- ing ground, commercial real estate owner/operator Prism Capital Partners continues on track for the Parkway Lofts to welcome its first renters in Spring 2013. Vis- ible changes already include façade work and preparation to install the 13-foot win- dows that distinguish the new design. Inside, Prism is in the midst of creating an intermediate second floor and a penthouse level that will convert the building’s six stories into eight. Prism acquired the 14.5- acre Parkway Lofts site in 2005, capitalizing on a great opportunity to take an obso- lete industrial property and with it create high-density, transit-oriented housing for underserved middle-market renters. Phase I, current- ly underway, involves the conversion of a 365,000 s/f warehouse building into 365 apartments, including 331 studio, one- and two-bedroom residences, and 34 penthouse units with terraces. Prism recognized the im- portance of identifying the strengths of the existing structure to ensure preserva- tion of its original character. “The design, by Minno & Wasko Architects and Plan- ners, utilizes the property’s 17-foot floor-to-floor ceiling heights,” said Eugene Diaz, a principal partner with Prism. “‘Industrial’ elements – such as exposed columns and beams, polished con- crete floors, and post-modern finishes – will compliment the new, historical replica windows and other original architectural features.” Prism will begin construc- tion for Phase II – which will include 170 for-sale townhomes, a clubhouse and additional lifestyle amenities – by year-end 2012. n have affect- ed re l es- tate values. An u derly- ing effect i the negative financial im- pact to prop- erty owners and manag- ers. Generally those on the low- er rungs of the socio-economic ladd r are hit the hardest during depressed times. As a property manager, I have seen a marked increase in crime in and around multi- family buildings. Unemploy- ment makes people desper- ate, desperation may lead to crime, and crime in general can bring an area down. If people don’t work nd can’t afford their rent, it may result i thes individuals being evicted or turning to crime in order to feed themselves and their families. The r sult is major vacancy problems for landlords. A decrease in or lack of rental income means, 1) landlords don’t have money to pay for their mortgage and operating expenses a d, 2) ad itional expense to market and renovate apartm ts so they can be rented. T is ca be a downward spiral in hic everyone loses. What is the solution? First, a preventive maintenance program will help combat this problem by dealing with small issues as soon as they come up. This will result in an overall better quality of life for tenants, and will cre- ate a clean and saf “curb appeal” to those looking for housing. Another proven technique for ten t rete - tion is proper screening dur- ing the applicati n process. Filling buil ings with ten- ants who re not transient in nature, have good cr dit, and positive w rk references will lead to overall stability, which creates a balanced and forecasted income. The cream always rises to the top: if you have a properly managed and well maint in d property, it will be easier to keep it that way and attract the right tenants. Top-of-the-market proper- ties also draw the attention of orga izations th t provide assisted housing. Assisted Chris Cervelli
Even in these difficult times, owners of investment property can do well by maintaining their buildings at or above levels of competing properties.
on the tenant to pay the full amount of the rent. Very of- ten, these organizations will pay a large portion if not the entire rent. In turn, tenants who receive assistance have been pre-screened by these organizations and are less
well-being of a property be- cause they need housing and desire to live in such a com- fortable, safe environment. These tenants are often of great assistance to the land- lord, acting as 24 hour “eyes and ears” at the property.
Parkway Lofts
Made with FlippingBook flipbook maker