26A — March 16 - 29, 2012 — New Jersey — Mid Atlantic Real Estate Journal
www.marejournal.com
Industrial Commercial Real Estate Women, Inc.
www.icrewnj.org
John Taylor of M&T Realty Capital speaks at Feb. meeting Multi-family Pipeline is “Booming” over Next 5 Years W OODBRIDGE, NJ — In 2008, the re- cession was “trig-
2012 BOARD OF DIRECTORS
PRESIDENT Cheryl Hardt Cheryl.hardt@cbre.com PRESIDENT ELECT AND CREW NETWORK DELEGATE Patricia A. Riedel Patricia.riedel@cbre.com TREASURER Sefi Silverstein ssilverstein@wgcpas.com RECORDING SECRETARY Rachel M. Brindisi rbrindisi@naiglobal.com DIRECTOR OF MEMBERSHIP Mary Lynn Kearns mkearns@dancker.com CO-DIRECTOR, PROGRAMING
driven initially by the lack of financing during the reces- sion and more recently by preferences and demograph- ic trends. “A lot of original condominiums have gone rental because there was not enough financing nor enough demand to complete them as condominiums,” he explained. “The rental com- munity, utilizing reduced rents, absorbed those that couldn‘t get financing.” In the changing environ- ment, “the spigot came back on in late 2009-2010,” he said. “The institutional buy- ers came back strong relat- ing to market conditions and the maturity of capital. Now, the multifamily environ- ment is one of stabilizing assets, skyrocketing values and lower cap rates.” One caveat on the lending side: “For Fannie Mae and Freddie Mac’s apartment lending side, projected prop- erty performance is great to see, however borrowers have to show what the numbers are now,” Taylor said. “‘Show us the supportable income and expense figures, and we’ll lend off of that’,” is the mantra. At the same time, the de- mographic change has cre- ated a younger generation seeking high quality living with multiple amenities while allowing for flexibil- ity in where they live. “The result is the traditional first home buyers in their 20’s to early 30’s are not buying a house today, yet they are savvy renters with specific requirements of their new residence.” The reality, of course, is that a quick jump in leasing velocity “has in- creased rents and property values creating a very com- petitive rental market now favoring the landlords.” Taylor termed the pipe-
line for new multifamily as “booming over the next five years, more for apart- ments than condominiums, especially class A product in urban centers near train sta- tions providing easy access to the strong job markets.” There will still be a market for class B and C product, however, and it will be up to landlords “to keep prop- erties viable. The rental market will remain very competitive, with substan- tial amenity packages. And, recognizing who your tenant is going to be is critical.” ICREW NJ’s monthly meetings traditionally sup- port a philanthropy. The February phi lanthropy garnered donations for the Community Food Bank of New Jersey. “Amost worthy cause, and we appreciate the strong response,” Hardt said. ICREWNJ is the New Jer- sey chapter of the national organization of CREW Net- work. With over 74 chapters and 8,000 members in North America, CREW Network is the industry’s premier busi- ness networking organiza- tion dedicated to supporting the achievements of women in commercial real estate. Members represent fields as diversified as accoun- tants, architects, appraisers, asset/property managers, attorneys, consultants, de- velopers, lenders, leasing and sales brokers, mortgage bankers/brokers, market- ing specialists, market and investment analysts, cor- porate real estate repre- sentatives and title/escrow officers. For more infor- mation on programming, sponsorship or membership, please contact ICREW NJ at (609) 585-6871, via email icrewnj@crewnetwork.org or visit their website at www. icrewnj.org.
g e r e d b y exuberance in the hous- ing market coupled with financial en- gineering in the commer- c i a l mor t -
John Taylor
gage market,” John Taylor, Managing Director, Multi- Family Finance for M&T Realty Capital Corp., told attendees at the February luncheon meeting of ICREW NJ at the Woodbridge Hil- ton. The subsequent bubble bursting with investments under water on the residen- tial side resulted in a pull- back across the board by the lending community. “Ongoing market condi- tions in all commercial real estate sectors is foremost on all of our minds,” said Cheryl Hardt of CBRE, 2012 ICREW NJ president. “This in-depth report is a good ex- ample of the kind of informa- tion that we seek to provide our members.” The irony is that while the real estate downturn might have begun in housing, other sectors, notably office, have struggled to come back while multi-family has rebounded in a big way, albeit as a changed industry. Part of the impetus for the bounce-back is attributed to the fact that “owners got very creative on rental pricing, terms and leasemodifications to remain occupied in the downturn; it was a true tenant’s market,” Taylor said. Now, however, the rental market has be- come “a landlord’s market once again specifically for the right assets.” One key change in the landscape: An upswing in rentals vs. home buying,
Monica Ceres, Esq. mceres@ghclaw.com CO-DIRECTOR, PROGRAMING (PHILANTHROPY) Susan Karp skarp@farerlaw.com CO-DIRECTOR, SPONSORSHIP Patricia D. Faulkner pfaulkner@naiglobal.com CO-DIRECTOR, SPONSORSHIP Diane Menard diane2@prestigetitle.net DIRECTOR,SPECIAL PROJECTS/GOLF Robin S. Grossman Rgros30687@aol.com DIRECTOR, SPECIAL PROJECTS/ WEBSITE/PR Rebecca Machinga, CPA rmachinga@withum.com ADVISOR & CREW NETWORK DELEGATE Sheila Spriggs Nall snall@kssarchitects.com ADVISOR Silvana Finizio sfinizio@carouselindustries.com
ADVISOR & BYLAWS Annette Murray, CPA amurray@wgcpas.com
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