Ken Uranowitz, president, Gebroe-Hammer Associates
LIVINGSTON, NJ—Multifamily investments are bringing the heat, from the region’s in-demand urban downtown districts to the picturesque highland and coastal regions, according to Gebroe-Hammer Associates. In June, the firm’s market specialists recorded 16 sales totaling more than 1,290 units that sold for more than $181.42 million.
“Multifamily transactions are certainly not showing any signs of deceleration,” says Ken Uranowitz, Gebroe-Hammer president. “June turned out to be a chartbuster for us, averaging a record four sales per week. And of the 16 deals we closed, three were portfolio sales representing a total of 967 units.”
The properties spanned New Jersey’s Bergen, Essex, Hudson, Monmouth, Morris, Ocean and Passaic counties, as well as Pennsylvania’s Lehigh Valley and Philadelphia submarkets. Asset classes ranged from a two-property 532-unit value-add South Jersey/Pennsylvania package to pre-war-era midrises poised for repositioning in bustling city-center neighborhoods.
“Today’s multi-family investment environment remains quite robust. Demand is still way off the charts, especially for properties in high-barrier locations primed for value-add opportunities, most commonly associated with long-term owners who find themselves at a crossroads,” says Uranowitz. “These owners recognize that in order to vie for tenants in the region’s high-end/transit-accessible neighborhoods, they must consider implementing their own capital improvement programs or take some ‘chips’ off the table in this highly competitive market. Understandably, original owners and developers are opting for the latter at a time when new development remains active, borrowing costs are low and tenant demand is keeping up.”
Gebroe-Hammer’s midyear benchmarks follow a strong first and second quarter. In January, the firm’s market specialists arranged the $130 million sale of Nob Hill in Roseland for $361,111 per unit and the $100 million sale of Cedar Wright Gardens in Lodi for $155,763 per unit.