Gebroe-Hammer Associates Reports Confidence Is High Among Multi-Family Investors
Buyers of Apartment-Rental Buildings Strengthen Commercial Real Estate Market.
- Bergen-Passaic, NJ (1888PressRelease) October 06, 2010 - The strongest signs of economic recovery in the commercial real estate sector are rooted in multi-family investments, as highlighted by the more than 44 deals recorded by Gebroe-Hammer Associates in Livingston in 2010 thus far. A commercial real estate brokerage firm specializing in the sale of multi-family properties, Gebroe-Hammer's clients include private owners, REITs, private equity firms and other institutional investors.
"Given the current state of the economy, rental living provides a viable and affordable alternative to people who are concerned about their long-term employment outlook, as well as those who are unable or cannot qualify to buy a home. This contributes toward a strong tenant pool, which is very attractive to multi-family investors seeking a sound, safe, performing investment," said Ken Uranowitz, managing director.
Unlike the commercial and retail sectors, apartment buildings are not as "dramatically sensitive to the economic downturn," added Uranowitz, "and there is a renewed willingness among lenders to finance these deals. Financial institutions recognize the stability of this type of asset, unlike weakly occupied office, retail and industrial properties during recessionary periods. More and more banks, including the smaller regionals that were dormant during the boom years, are now actively providing a steady stream of mortgage money to finance multi-family deals."
"Buyers are also taking advantage of Eisenhower-era interest rates and, as a result, sellers are achieving values and cap rates similar to those of a few years ago. Combined, all of the above are driving heavy demand for this type of asset - notwithstanding the uncertainty in today's economic climate," said Uranowitz.
Recent deals closed by Gebroe-Hammer highlighting these trends include two separate transactions involving 243 total units that sold for a combined $16.1 million in Plainfield; the $4.925 million trade of 46 one- and two-bedroom apartment-rental units at 481 South 2nd Ave. in Highland Park; $3.1 million sale of 16 units in Hoboken; and $1.4 million sale of 18 units in South Orange.
Despite the general "good health" of the multi-family investment market, where demand is greatly exceeding supply, there has been an influx of distressed debt opportunities this year. "This wave of note sales was expected as banks began to shed non-performing debt in order to clear their balance sheets," said Uranowitz.
Between March and September, Gebroe-Hammer negotiated 22 separate note sales involving a total of 1,803 units exceeding $85.350 million on behalf of several major banks. In addition, the firm was retained as exclusive broker by various debtors in Chapters 7 and 11 Bankruptcy. Gebroe-Hammer conducted traditional sales and auction sales (Section 363) of numerous multi-family properties in concert with several large prominent financial institutions. The firm's expertise in note and REO sales dates back to the recession of the early 1990s, when Gebroe-Hammer sold well over 100 multi-family properties for the Resolution Trust Corp. (RTC) and Freddie Mac.
Gebroe-Hammer Associates is New Jersey's dominant, most experienced commercial real estate brokerage firm specializing in multi-family, retail and office property investment sales. With a concentration on suburban and urban high-rise, mid-rise and garden-apartment properties, the company also markets mixed-use and free-standing office and retail properties throughout New Jersey, New York and Pennsylvania.
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