S HOPPING C ENTERS N EW J ERSEY M ID A TLANTIC R EAL E STATE J OURNAL
17A — February 10 - 23, 2012 — New Jersey — Mid Atlantic Real Estate Journal
www.marejournal.com
LMWOOD PARK, NJ —Nat Gambuzza, a se- nior associate and vice Sales in excess of $10.2 million closed within a sixty day span Gambuzza & Federgreen of Marcus & Millichap close 142 Units in Union County E Just a few blocks away the $1.1 million sale of 18 units, is located at 701-711 Kens- ington Ave. in Plainfield.
erty is located at 415 East Elm St. in Linden. “Multi- family remains one of the most sought after investment vehicles. Pent up demand and ability to finance at low rates have recently increased values,” said Gambuzza. “Union County offers a great highway and public transportation infrastruc- ture as well as a diversified employment pool, which keeps occupancy levels up for our investors,” said Fed- ergreen. “Union County has held its appeal amongst investors for its stability” said Gambuzza. “Every one of these proper- ties had multiple offers and as a result tight terms and competitive pricing were achieved.” ■ rents, Merin said. “Rents are not growing, and little tenant absorption is occurring,” he noted. “The only value-add product that is moving are those assets viewed as absolute distress.” Merin said that his team an- ticipates an even better—and less contradictory—year in 2012. “Activity likely will re- turn to a more promising pace, commensurate with some reso- lution of economic and global issues,” he noted. “Addition- ally, this is an election year, which traditionally serves as a boost to the stock market. And, as banks begin to write down some of the assets they have been holding, we will see a sig- nificant number of deals come out of distressed pools. This will create additional invest- ment opportunities for some of the money that has been forced to sit on the sidelines.” ■
president of the f i rm’s N a t i o n a l Multi-Hous- ing Group, along with a s s o c i a t e , Lauren Fe- d e r g r e e n c omp l e t ed five transac- tions total- ing 142units i n Un i o n County. This a c h i e v e - ment with sales in ex- cess of $10.2 m i l l i o n closed with-
The $2.55 million sale of Riverside Gardens, a 30 unit property, is located at 156 West Grand Ave.e in Rahway. Agarden style multi-family featuring 16 units located at 36-42 Elm St. in Eliza- beth, sold for $1,075,000. This brick building has a pitched shingle roof, and offers a great unit mix of 3 studio apartments, 9 one bedroom apartments and 4 two bedroom apartments. This marks the second time Marcus & Millichap has sold this asset. Lastly, the $520,000 sale of an 8 unit multi-family prop- multifamily garnered high demand, less product came online in these sectors last year,” Merin said. “Still, the properties that did trade drew respectable pricing and cap rates.” Throughout 2011—regard- less of how much product was trading—buyers and financ- ing sources alike remained particular in terms of their selections. “It was a market of ‘haves’ and ‘have-nots,” Merin said. “Only the right product in the right place drew attention and sold—and it sold competi- tively. Secondary locations and product simply could not at- tract bidders.” Additionally, investors and lenders were hesitant to give credit for any value-add deals based on the need to retain or add tenants, or increase “HAVES” and “HAVE NOTS”
Nat Gambuzza
Stoneybrook Gardens
the New Jersey office states “Gambuzza and Federgreen know the Union County mar- ket extremely well, and as a result were able to unlock the value in each of these transactions and execute for their clients.”
Stoneybrook Gardens, a 70 unit property, located at 643-715 East Front St.in Plainfield, represents one of the transactions. This well- maintained garden style apartment complex is com- prised of 5 one-bedroom, 55 two-bedroom and 10 three- bedroom apartments.
Lauren Federgreen
in a sixty day span. Michael Fasano, regional manager of
The $5 million sale of
Cushman & Wakefield Capital Markets Team inks $1.3 billion in 2011
EAST RUTHERFORD, NJ —With $1.3 billion in complet- ed transactions during 2011,
mentals were not improving markedly, things certainly were stabilizing with a resur- gence of investment opportu- nities.” However, summer’s arrival brought a number of chal- lenges. “Budget and deficit issues here in the United States, problems in Greece and with European banks, and the flighty nature of the stock market caused pause,” Merin noted. “Investors and financ- ing entities quickly returned to a more conservative stance, bringing a rapid slowdown in dealmaking. In fact, our team literally saw confidentiality agreements (which essentially mean a free look at a property) drop by about a third, and bidding reduced by up to one half.” Still, the Metropolitan Area Capital Markets Group main- tained steady activity, orches-
trating 23 transactions across product types. This included nine office sales totaling 3.4 million s/f in New Jersey, New York and Connecticut. Among themwere three Jersey City transactions, which sold for $670 million at record psf pricing. Merin’s team also closed eight industrial trades, total- ing 5.5 million s/f in New Jer- sey, Pennsylvania and South Carolina. The sale of Saw Mill Park in Kearny, on behalf of Russo Development was one of the highest psf sales in 2011 and sold for a sub 6% capital- ization rate. The MetropolitanArea Capi- tal Markets Group also closed three retail deals involving 610,000 s/f in New Jersey, New York and Pennsylvania; and three New Jersey multifam- ily transactions involving 464 units. “While both retail and
Cushman & Wake f i e l d , Inc.’s Metro- politan Area Capital Mar- kets Group experienced robust activ- ity that re- flects a year of steps for-
Andrew Merin
ward and back, and “haves” and “have-nots,” according to AndrewMerin, vice chairman. Ultimately, the East Ruther- ford-based team closed its best year since 2008, including mul- tiple record-breaking deals. “The first six months of 2011 brought a marked increase in activity,” Merin said. “For the first time since the recession took hold, product began to flow and demand increased among buyers. While funda-
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