Mid Atlantic Real Estate Journal — August 17 - 30, 2012 — 9A
www.marejournal.com
M ultiFAMily F inAncing
Firm arranges three multi-family trades netting a combined $.+ million in days Gebroe-Hammer Associates hosts East Orange Multi-family Investment Roundtable
E
AST ORANGE, NJ — Gebroe-Hammer Associ- ates hosted the East Or-
ing Committee and as a mem- ber of the Housing, Licensing and Inspection; Finance; and Public Safety Committees. The session focused on how multi-family investors and landlords are contributing to- ward the City of East Orange’s urban revitalization and the important role of apartment buildings in future renewal initiatives. The Investment Roundtable was organized by Gebroe-Hammer executive VP David Oropeza, East Orange market specialist, as well as Isaac Frankel, who owns and manages approximately 30 buildings throughout Essex
County, including East Orange, and Ken Uranowitz, the firm’s managing director. In other multifamily news, three recent multi-family trans- actions that netted a combined $5.8+ million have paved the way for a stellar summer for Gebroe-Hammer Associates and the apartment-rental in- vestment sector as a whole. The firm recently arranged the trades, involving a total of 116 units, in NJ’s Union and Hudson counties and Delaware County, PA. Gebroe-Hammer was the broker in each trans- action, all within an eight day period. n
outside global market influ- ences and thus less certain in ability to execute on their loan applications. This has particu- larly impacted their competi- tiveness for acquisition loans since the sponsors are sensitive to potential loss of deposits in the event of a negative market event. All of these factors have relegated the conduits to quot- ing and funding transactions which fall outside the strike zone of their competitors. This was the original position of the conduits in their infancy in the late 90’s and it remains to be seen how they will recapture more market share, particu- larly for desirable apartment assets. In addition to the four major categories listed above there are a number of specialized lenders who provide funding for apartment properties including Lenders who focus on bridge or interim lending, acquisi- tion lenders who accommodate value addition through moder- ate to substantial rehab, and mezzanine and preferred equity sources who fund the upper levels of the capital stack. What is consistent through- out any discussion of current apartment financing is that the overwhelming competitive landscape that has created a boon for existing apartment owners and an overheated market for investors trying to acquire apartment assets for their portfolios. The historic low rates have contributed to this scenario but regardless of rates some level of favor for apartment loans is expected to continue as traditional hom- eownership levels are projected to be lower over at least the near term and apartment com- munities should continue to outperform other commercial real estate assets. Edward D. Brown is a senior VP and managing director for NorthMarq’s Philadelphia Office. n continued from page A By Brown . . . ange Multi-Family Investment Roundtable, an informational exchange between some of the city’s most prominent apart- ment-building owners and East Orange Councilman Ted Green, who represents the ThirdWard. He serves as Chairman of the Business Development & Zon-
Shown from left: Ken Uranowitz, Councilman Ted Green, David Oro- peza and Isaac Frankel
Better Solutions Better Relationships deliver
RECENT DE AL S
$7,100,000 Southgate Apartments STUDENT HOUSING | NEWARK, DE LENDER: FREDDIE MAC
$4,500,000 Creek Village Apartments 180 UNITS | LEVITTOWN, PA LENDER: LIFE COMPANY
$22,300,000 Bethlehem Fields 216 UNITS | BETHLEHEM, PA LENDER: REGIONAL BANK
Capital Markets
northmarq.com
Philadelphia Office 215.496.3000 33 offices coast-to-coast
JOSEPH SWEENEY | EDWARD BROWN PHILIP DEETER | MICHAEL AYLMER
Made with FlippingBook flipbook maker