Mid Atlantic Real Estate Journal — New Jersey — September 13 - 26, 2013 — B


N orthern N ew J ersey

By Marc Schwartz, Marc Realty Valuations take a turn for the buyer

Opening their amenities to visitors Vermella Lyndhurst celebrates summer

LYNDHURST, NJ — It was an afternoon filled with mu- sic, gourmet cuisine, poolside lounging and red-carpet photo shoots fit for a celebrity. The stars of the showwere the first- rate amenities that Vermella Lyndhurst offers every day, though. On Saturday, July 20, resi- dents started the morning with a free yoga class in the clubhouse studio, a featured element of the community’s 2,000 square foot fitness cen- ter, and a fresh spa-inspired breakfast. “Our community prides itself on offering a level of amenities

and service that residents can’t find anywhere else,” said Ryan Fontaine , director of opera- tions for Vermella Lyndhurst. “The idea of the event was to create an even more opulent setting for residents and visi- tors to feel pampered.” Vermella Lyndhurst current- ly has over 100 residents in its first two completed buildings, since opening this February. The community will ultimately feature 296 one-, two- and three-bedroom apartment homes that range from 804 to 1,919 square feet. The third building is expected to open for leasing this fall. n


he proverbial pendu- lum has taken a swing to the buyer’s side of

stream of an investment multi-tenant property, a segmented approach can be helpful with varying cap rates being applied to the “anchor” tenants vs the “sat- ellites” and out- parcels in retail deals such as a bank or auto service. By applying a more relevant (e.g. higher) cap rate to the lower credit tenants, the blended cap rate results in a more balanced valuation. Forward income is more appropriately used rather than last year ‘s in- come which may still reflect

high vacancy and rent “give backs” from renewal negotia- tions. Clearly, the buyer controls the pricing in investment deals as the purchase of the asset remains a discretion- ary one. Buyers and sellers should watch out for the pen- dulum as it may hit you on the way in or out depending on your position. For now, it looks more positive for buy- ers if the seller is motivated to sell. Marc Schwartz is owner of Marc Realty. n

commercial investment real estate deals. The r a p i d bu t mostly un- recognized increase in the 10 year t r e a s u r y

Marc Schwartz

yield (a barometer for cap rates and commercial financ- ing terms) in just 3 months time to nearly 3% should lead to more favorable pricing of deals for the buyer. For the past 5 years the interest rate environment has been favorable to buyers which resulted in lower cap rates and the lowest mort- gage rates we have seen in a generation. As cap rates moved lower on the scale, seller ’s enjoyed stronger prices for their assets, all things being equal. The credit of the borrower and of tenants in investment deals remained the focus while income projections became more reasonable with the discounts having been real- ized on renewals and conces- sions to new tenants. In evaluating the income foot pricing north of $100PSF, once only true of office sales, is becoming the norm for prime institutional submarkets like the Meadowlands, which has seen five $100PSF+ year- to-date. Bentall Kennedy’s $98MM acquisition of the Pearson Education building at Exit 8A is further evidence of the desire to place indus- trial allocations in our state. CY2013 continues as a great time to be a seller for New Jersey’s industrial landlords who are well positioned to capitalize on product starved national capital markets in combination with strong and strengthening fundamentals at home. Brian J. Whitmer, CCIM is senior director of the Investment Sales, Capital Markets Group of Cush- man & Wakefield of New Jersey, Inc. n continued from page 6B By Brian Whitmer, CCIM, Cushman . . .

A u c t i on s Comm e r c i a l P r op e rt i e s

2,122+/- SF Commercial Building 1808 PennsylvaniaAve., Baltimore, MD ABSOLUTE AUCTION BY ORDER OF BANK Former Bank Branch In cooperation with Excel Auction Lic#AU000020 and Cooperation with Auction Management Corp. SEPTEMBER 30 @4PM Baltimore, Maryland Property Preview September 18 12-2pm ABSOLUTE AUCTION BY ORDER OF BANK Minimum Bid $275,000 5 Lot Commercial Approved Subdivision 9+/- Acres 42Trenton Lakewood Rd. ,Millstone, NJ October 16 @11AMMillstone, NJ 33,000+/- SF IndustrialWarehouse 6804 Delilah Rd., Egg HarborTownship, Atlantic County, NJ 08234 Situated on 2.64+/- acres 441+/- Feet of frontage on Delilah Road Zoned M-1, Light Commercial Wed, Oct. 16th @ 3PM Egg HarborTwp., NJ Preview: Sept. 25th &Oct. 2nd Noon-2PM

Major Retail Redevelopment Opportunity 1712 Route 31, Hunterdon County, Clinton, NJ

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• 55,000+/- SF on 7.96+/- Acres • Former Shop Rite at Signalized Intersection • Frontage on Route 31 • Minimum Bid $550,000

Fri, Sept. 27th @ 1PMClinton, NJ

ABSOLUTE AUCTION BY ORDER OF BANK In Cooperation with Auction Management Co. September 30 @10AM Bound Brook, NJ 2.7+/- Acres 600 E. UnionAve. Somerset County, NJ • •

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For more information, please call 888-299-1438

Or visit maxspann.com

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