Gebroe-Hammer Associates Reports Multi-Family Investments to Strengthen in 2011 on Heels of Robust 2010 Trading
Livingston, N.J.-Based Firm Recorded 53 Deals Last Year.
- New York, NY (1888PressRelease) February 17, 2011 - Demonstrating the ability to weather virtually any economic storm, multi-family investing is expected to strengthen this year on the heels of robust trading activity in 2010, according to Gebroe-Hammer Associates, the region's most active commercial real estate brokerage firm. The Livingston, N.J.-based company, which specializes in multi-family, retail and office property investment sales, closed a total of 53 deals in 2010 involving 3,650 units.
"New Jersey is a very unique market. Existing multi-family properties, many of which are post-war era buildings in the Class-B and Class-C category and are typically owned by individual, private investors, trade with greater frequency than other building types," said Ken Uranowitz, managing director. "Suburban garden-apartment complexes and urban mid-rise buildings, located in densely populated commuter hubs, are in great demand, with inventory in short supply." In addition to private owners and investors, Gebroe-Hammer's clients include REITs, private equity firms and other institutional investors.
Active throughout the Northeast, with a concentration on New Jersey, New York and Pennsylvania, Gebroe-Hammer markets suburban and urban high-rise, mid-rise and garden-apartment properties as well as mixed-use and free-standing office and retail properties. The firm's brokerage professionals predict that multi-family investments will gain even greater momentum as the residential housing market continues to experience restrictive lending, decreasing home values and the unaffordability of homeownership resulting from an uncertain employment market.
"As a result of these conditions, apartment rentals will only strengthen occupancy rates - already hovering in the mid-to-high 90th percentile range statewide - and drive deal velocity," added Joseph Brecher, executive vice president.
With several deals already in the pipeline for 2011, Gebroe-Hammer closed the largest Jersey City transaction of 2010 involving a 10-building, 306-unit portfolio in the final weeks of Q4. The well-maintained properties, which boasted an overall occupancy rate of 93 percent at the time of the $16.175 million sale, are centrally located within the popular Journal Square and Greenville districts near schools, transportation, shopping and major office centers.
Other recent sales highlights include the $5.1 million sale of a 120-unit garden complex in Hi-Nella, N.J., and a Bergen County, N.J., trade involving 19 units in Fairview.
More Distressed Debt and Note Sales on the Horizon
As anticipated, a wave of distressed debt and note sales came to market around mid-year and is expected to carry over in 2011. In total, Gebroe-Hammer handled 23 of these complex closings last year. These atypical transactions often involved the sale of non-performing bank debt and, in cases where the debtor filed Chapter 7 or 11 Bankruptcy, Gebroe-Hammer was the exclusive broker approved by the U.S. Bankruptcy Court. The firm conducted several Sec. 363 sales for debtors-in-possession as well as existing lender(s) and numerous other creditors and attorneys.
"These types of sales require highly specialized brokerage knowledge and expertise requiring the necessary resources and relationships to market the property and complete the sale in a timely, satisfactory manner," said David Oropeza, executive vice president. A 24-year multi-family brokerage industry veteran, he orchestrated one of New Jersey's most complex distressed multi-family portfolio dispositions in October. Comprised of four buildings in East Orange, the portfolio included 270 total units valued at $10.5 million.
"As has been the case throughout Gebroe-Hammer Associates' 36-year history, including many economic downturns, apartment buildings have once again demonstrated their resiliency, investment/performance potential and favorability among banks and lenders. In contrast to office, retail and industrial real estate - severely affected during bad times, the need for rental housing is virtually recession-proof, thereby solidifying this type of investment in any economic environment," said Uranowitz.
Established in 1975 by industry icons Mel Gebroe, chairman, and the late Morris Hammer, Gebroe-Hammer Associates is among the tri-state region's most influential brokerage firms widely recognized for its consistent sales performance. A seven-time CoStar Power Broker, Gebroe-Hammer's proven track record on behalf of its clients has resulted in consistent growth every year since its inception, with a large percentage of repeat business from owners and investors.
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