2A — February 28 - March 12, 2020 — M id A tlantic Real Estate Journal
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M id A tlantic R eal E state J ournal Publisher, Conference Producer . .............Linda Christman AVP, Conference Producer ...........................Lea Christman Publisher ........................................................Joe Christman Section Publisher ............................................. Steve Kelley Section Publisher ............................................... Kim Brunet Editor/Graphic Artist..... .................................Karen Vachon Office Manager ...............................................Kerrin Devine Mid Atlantic R eal E state J ournal ~ Published Semi-Monthly Periodicals postage paid at Hingham, Massachusetts and additional mailing offices Postmaster send address change to: Mid Atlantic Real Estate Journal 350 Lincoln St, Suite 1105, Hingham, MA 02043 USPS #22-358 | Vol. 32, Issue 4 Subscription rates: 1 year $99.00, 2 years $148.50, 3 years $247.50 & $4.00 single issue - plus postage REPORT AN ERROR IMMEDIATELY MARE Journal will not be responsible for more than one incorrect insertion Phone: 781-740-2900 | Fax: 781-740-2929 www.marej.com
Alan Hammer Allen Popowitz
Brach Eichler’s CRE industry outlook for 2020 reveals growth
R OSELAND, NJ — The real estate prac- tice at BrachEichler, a Roseland , NJ based law firm, has announced that it closed just under $2.05 billion in real estate deals in 2019. Real Estate Practice Chair Allen Popowitz said the strong year was a continu- ation of a positive trend in real estate throughout the mid-Atlantic states. Among the highlights: • The strongest sector was multifamily, with 25,000 total units across 80 trans- actions, representing sales, purchases and refinancing. This included one deal with more than 6,000 apartments with a transaction value over $1 billion. The predominant property locations for multi- family included NJ, NY, NC, PA, DE, MD, MI, and VA. • Other significant deals for private investors included: ▪ Over 1,500 apartments in Michigan for one investor (five properties) ▪ The refinancing of 11 properties containing almost 3,000 units in the Capital District of New York ▪ The acquisition of over eight properties containing a total of 1,500 apartments in NC, VA, and MD) • Commercial properties represented a diverse cross- section of industrial, retail and other commercial uses, including office buildings, automobile dealerships, a gas station, hotels, country clubs, warehouse distribution and industrial buildings, a self- storage facility, strip malls, and mobile home parks. “For our clients, Maryland and Virginia are playing a significant role in this con- tinuing velocity of real estate transactions, as is North Carolina and Michigan,” said Popowitz. “Our inves- tor clients in the New York metro market are seeing the value in investing further south where greater yields are available. In addition, the demand for workforce housing is still very strong in those markets, as well as in New Jersey and New York.” Popowitz noted that the New York metro area bedroom
communities are still hot, with a high rate of redevel- opment in Hudson County, which he said had been long underappreciated. In terms of lenders, Brach Eichler Real Estate member Alan Hammer said that Fannie Mae and Freddie Mac are still actively lending
particularly industrial and multifamily properties, which will continue to fuel this robust level of activity,” he said. According to Popowitz and Hammer, among the trends that will continue to shape the real estate landscape in 2020 are those related to shifts in the healthcare field:
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Medical facilities are occupying different spaces than in prior years. Urgent care facilities will continue to proliferate due to consumer demand; expect to see more of them going into shopping malls and office buildings.
on the largest transactions. “Insurance companies—prin- cipal lenders in real estate— are lending selectively to in- vestors at very good rates. In addition, local banks are ac- tively and aggressively lend- ing to individuals with solid investment track records, and they remain keen on working with time-honored products and customers they know,” said Hammer. Hammer pointed to the country’s sound economy and the booming stock market as a leading indicator of what to expect in 2020. “The real es- tate market will remain very active, as mortgage interest rates remain at historic lows. Since this is an election year, we can be fairly sure that the incumbent president running for re-election will remain committed to low interest rates and the availability of inexpensive capital.” Hammer also noted that a new kind of investor has entered the market in recent years. “They are people who’ve ac- cumulated wealth by invest- ing in other asset classes and now want to be in real estate, The Real Estate Outlook for 2020
• As the single practitioner model of healthcare contin- ues to decline and practices merge or are acquired by hospitals, abandoned small- office space once occupied by healthcare providers will become available. • Conversely, as medical practices and hospitals con- solidate, they will continue to drive demand for larger facili- ties to absorb their expansion. • Medical facilities are occupying different spaces than in prior years. Urgent care facilities will continue to proliferate due to consumer demand; expect to see more of them going into shopping malls and office buildings. • Rehabilitation facilities are becoming more numerous and expanding into the retail space, as well. Popowitz also acknowl- edged the considerable va- cancies in suburban office buildings. “In 2020, we’ll see owners adding many new amenities to attract ten- ants, as well as converting formerly vacant office proper- ties into multifamily, retail, and community spaces with enhanced services such as conference rooms and game areas.”
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