20B — September 25 - October 15, 2015 — Owners, Developers & Managers — M id A tlantic
Real Estate Journal
www.marejournal.com
2015 G overnor ’ s C onference
By Chris Cervelli, CCIM, Cervelli Management Corporation Cervelli Management: providing services to the real estate industry for over 29 years
C
agement and disposition of distressed assets. We use our own cash and we don’t rely solely on third party invest- ments. We are careful and con- servative in our investment strategies. Some have said this has lead to missed opportuni- ties however we like to think it points to a slow, sure and steady investment plan that will lead to passive income and asset accumulation. More importantly, this strategy has lead to consistently higher returns and has never jeop- ardized our partner’s invest-
ment. Here are a few examples of our investment strategy… Our group purchased a 36,000 s/f office building in Hudson County that had gone dark. Within 90 days of clos- ing we had the building 50% occupied. Within 180 days we had the building 75% occupied. Within 3 years the building was fully leased and financing was secured. We withdrew our equity and continue to enjoy a very healthy cash flow. The value of the building has in- creased over 350% as a result of our business acumen.
Within the last 5 years we purchased a rural underper- forming subsidized apartment building with substantial rent losses in Morris County. Within one year we increased the net income and have been enjoying a positive 8% cash on cash return. This was a result of aggressive, unyield- ing collection policies and cost control measures. The value of the project has increased over 200% as a result of our efforts. Within the last 7 years our group purchased an urban subsidized apartment build-
ing in Jersey City. As a result of our hands on management we substantially increased the net income in just 2 years and within the next year we extracted our equity out of the project. We have been enjoying a steady cash flow for many years. This property is in the heart of an urban area with neighborhood challenges. We like to boast that this prop- erty is in great condition and our lender recently did an inspection and stated it had the cleanest common areas in the county! In addition, our rent-vacancy loss is less than 4%. The value of this asset has increased over 300% as a result of our efforts. We saw the value in these deals that others did not and we unlocked that value with professional hands-on man- agement. If you would like to learn more about our team please visit our booth at the Governor’s Conference on Sep- tember 22nd and 23rd or reach out to us at 201-868-6300. Chris Cervelli is a broker associate at Michael Cer- velli Real Estate, LLC. n CHERRY HILL, NJ — On Tuesday, September 8, 2015, the New Jersey Apartment Association Political Action Committee (NJAA PAC) held an event with Senate President Stephen Sweeney at Woodcrest Country Club in Cherry Hill. The luncheon was hosted by Michael Haydinger of First Montgomery Group, and al- lowed NJAAmembers and PAC contributors the opportunity to hear from the Senate President on key issues and to strengthen relationships with him. NJAA PAC has been holding similar invitation-only events throughout the year to provide NJAA PAC’s top contribu- tors with the opportunity to meet legislative leaders and to engage in a dialogue on the issues that are important to the multifamily industry. NJAA PAC will be holding its annual fundraising reception on October 13, 2015, at the Crestmont Country Club. If you are interested in becoming part of the NJAA PAC and get- ting involved in these events, please contact Nicholas Kikis at 732-992-0600 or via e-mail to pac@njaa.com. n NJAA PAC Holds Event with Senate President
ervelli Management Corp and Michael Cervelli Real Estate
LLC ha v e been provid- ing broker- a g e , ma n - agement and c on s u l t i ng servi ces to the real es- tate industry for over 29
Chris Cervelli
years. In addition, we have partnered with local inves- tors and institutions in the purchase, rehabilitation, man-
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