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RealShare NJ Preview: Multifamily sector stable, attracting equity capital, says HFF’s Cruz

José Cruz of HFF at RealShare Philadelphia 2016 (William Neumann photo) José Cruz of HFF at RealShare Philadelphia 2016 (William Neumann photo)

FLORHAM PARK, NJ—The multifamily sector remains a stable investment that attracts equity capital, according to José R. Cruz, senior managing director, Holliday Fenoglio Fowler.

“There is still a significant amount of equity capital in the market for value add and opportunistic deals, despite the fact that investors are being more selective on core deals they are still trading a very strong pricing,” says Cruz, one of the panelists featured at this year’s RealShare New Jersey Conference in Florham Park, NJ, on Sept. 19. “Core-plus transactions are trading in the fives on a cap rate basis and in select locations are seeing pricing in the fours. The debt markets remain flush with capital and continue to help drive pricing regardless of product type.”

Cruz will participate in a panel discussion entitled, “Unlocking the Value in Multifamily Properties: How are Developers and Investors Finding Opportunities in this Sector?” moderated by Mitchell S. Berkey, co-chair of the real estate group at law firm Chiesa Shahinian & Giantomasi, scheduled to start at 10:00 a.m. The conference kicks off Tuesday, September 19 at 7:30am at the Brooklake Country Club, 139 Brooklake Road, Florham Park, NJ.

In comments provided exclusively to GlobeSt.com in advance of his appearance at the conference, Cruz says, “Multifamily maintains its position as a stable investment with rental upside, and we are seeing more multifamily trade this year than prior years.”

Municipalities are looking to multifamily developments as a solution to property tax crunches, he says.

“Real Estate taxes have become a focal point on every transaction as the towns continue to look for ways to generate revenue,” Cruz says.  “Every deal’s underwriting focuses on the impact of future tax increases.”

Other participants on the multifamily panel are: Brian Hosey, vice president / regional manager for New Jersey, Marcus & Millichap; Christopher M. Bellapianta, managing principal, Camber Real Estate Partners; Russell Tepper, senior managing director – New York, New Jersey & Connecticut, Mill Creek Residential; Alex Cocoziello, principal and vice president of investment, Advance Realty; Brian Stolar, president and CEO, The Pinnacle Companies.

More information on the RealShare New Jersey Conference is available here.




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