6C — May 15 - 28, 2015 — NJAA CONFERENCE & EXPO — M id A tlantic
Real Estate Journal
2015 NJAA C onference & E xpo
he No r t he rn NJ Multi-Family invest- ment market is ex- By Chris Cervelli, CCIM, Michael Cervelli Real Estate, LLC The Northern NJ Multi-Family investment market: A geographic magnet in Hudson T interest rates for the imme- diate future, with plenty of cash waiting on the sidelines, up, closed for $123,888 per door. While this may seem like an elevated price point,
investors in looking for yield and upside. Extremely com- pressed cap rates in Brook- lyn, Queens and Manhattan, has turned New Jersey into a safe haven for investors. Ac- cording to CoStar Analytics, Hudson County witnessed 238 transactions totaling 3,784 units representing roughly 5% of stock. With an average cap rate of 7.2% - much higher than in Brook- lyn or Queens - there seems to be a lot of wind still behind these sails. The Federal Re- serve has been saying that they have no plan to raise
Many years ago, it was com- mon to evaluate a property based only on its financial indicators. There were rules of thumb like Gross Rent Multiplier, or only paying so much per door, but now with the competitive nature of investors and so few assets, investors have been forced to now value current yield, and upside over standard metrics. Even with the competitive nature and higher prices found in the darling areas of Hudson County, such as Jersey City’s Journal Square, downtown and Hoboken, there are still pockets where an investor can realize dou- ble digit returns. In Jersey City specifically, especially along the transit lines, there are areas that have tremen- dous growth potential. It may take some time, but based on the location of these assets, and the demand of renters to live in commuter friendly neighborhoods, it is only a matter of time before these neighborhoods too, Brooklynize. Michael Cervelli Real Es- tate has been providing ex- pert advisory and brokerage services to the Northern NJ market for over 30 years. As a second generation com- pany, they have proven to be among the top service providers. CoStar Analytics ranks Michael Cervelli Real Estate #2 in buyer repre- sentation and #3 in landlord representation for the entire year of 2014 in Jersey City. Additionally, NJBIZ had MCRE ranked number 22 in its list of New Jersey’s Top Commercial Real Estate Brokerages. As a family busi- ness, to be recognized as a leading service provider is truly rewarding. Chris Cervelli is a bro- ker associate at Michael Cervelli Real Estate LLC. Currently he supervises the sales staff and has developed a wide circle of partnerships within the NYMetroCommercial Real Estate Community. Chris also sits on the Board of Directors for the New Jer- sey Property Owners As- sociation, is the President of the Metro Commercial Multiple Listing service and is the President Elect of the New York Metro CCIM Chapter. n
periencing a renaissance as it grows into its place as the sixth borough of New York. W i t h i t s convenient public trans-
“Even with the competitive nature and higher prices found in the darling areas of Hudson County, such as Jersey City’s Journal Square, downtown and Hoboken, there are still pockets where an investor can realize double digit returns.”
Northern NJ’s ascent looks to continue into 2015. This forecast is already well on its way as a string of recent closings points to new highs. Just recently 604 21st street, a Union City walk
the real story is in the yield and upside. This property presented many areas where the incoming ownership was able to identify and add value, and that is how a lot of investors are now competing.
portation network, comfort- able standard of living, and competitive pricing, Hud- son County has become a geographic magnet pulling
Almost SOLD OUT! Call us if you want to sell or buy!
Guttenberg 7,500 sf Development site
Edgewater 2,843 SF Retail
JC Heights Off Market Deal
Union City $123,888 per Unit!!!
West New York 16 Units- MixedUse
North Bergen 13 Units
Fairview 6 Units
Jersey City 20 Units- Mixed Use
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