Gebroe-Hammer Associates
2 West Northfield Road
Livingston, NJ 07039

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Release Date: March 22, 2010

Media Contact: Carin McDonald (201) 796-7788

GEBROE-HAMMER ASSOCIATES CLOSES THREE KEY MULTI-FAMILY DEALS REFLECTING RESURGANCE OF ELIZABETH AS A CITY WITH A "SUBURBAN FEEL"
Transactions Involve 105 Total Units Sold for $7.89 Million

ELIZABETH, N.J., March 22, 2010 – Multi-family investments of small-to-mid-sized buildings are on the rise in Elizabeth, N.J., mirroring the city’s renewal as a highly favored community in which to live, work and enjoy leisure activities, according to Gebroe-Hammer Associates of Livingston, N.J. The firm recently closed three transactions in the city, the latest of which was the $1.55 million trade of 21 units located at 204 Westfield Ave., near downtown.

“Investors are very actively seeking top-quality multi-family properties throughout Elizabeth because of the community’s solid working-class tenancy, high foot traffic and unique sense of a suburban community within what is actually New Jersey’s fourth largest city,” said Gebroe-Hammer’s Stephen Tragash, sales associate and area specialist. “Apartment building owners, many of whom have held properties in the area for generations, realize the time is right to sell. This is because interest rates remain low, the willingness of lenders to finance multi-family investments due to their proven long-term performance and a looming change in the capital gains tax at year-end.”

Owned by the same family for 25 years, Gebroe-Hammer served as the exclusive broker for the Westfield Avenue property, which offers a mix of one- and two-bedroom units. In addition to representing the seller, Tragash procured the buyer, a long-time Gebroe-Hammer client whose portfolio includes other buildings throughout Union County. To finalize the transaction, Gebroe-Hammer also negotiated the modification of a ground-lease agreement with Conrail, which owns adjacent land, for parking facilities.

“This complex process allowed Gebroe-Hammer to really showcase our market knowledge and overall expertise in serving as a liaison with multiple parties, including government agencies when necessary, to close the deal and satisfy everyone’s objectives,” said Ken Uranowitz, managing director.

The firm also negotiated the sale of 84 additional units in two separate transactions within the Elmora neighborhood. Joel Schwartz, executive vice president, represented the unnamed buyer in the $4.8 million all-cash sale of 62 units at 516 Cherry St.

Schwartz, along with Tragash, represented the seller, the heirs to the original builder who have owned and operated the building for the past 47 years. At 511 North Ave., Schwartz represented the seller while Tragash identified the buyer, a long-time Gebroe-Hammer client, who acquired the 22-unit mid-rise building for $1.54 million.

“Elmora is a charming middle/working-class neighborhood, which offers some of the best restaurants, retails shop and boutiques in the city,” said Tragash. “It is among one the county’s hottest districts in which to live and invest.”

As a center of retail, transportation and employment due to its proximity to Jersey Gardens Mall, the Port of Elizabeth, Newark Liberty Airport and several other major industries, Elizabeth has embraced an economic revitalization program that is transforming the waterfront into a shopping and business development hub. “The restoration and addition of parks, new recreation facilities and appealing neighborhoods have positioned Elizabeth for a revitalization initiative like no other,” added Tragash.

Located in the northeastern corner of Union County, Elizabeth is the county seat. The city is served by an extensive public transportation and highway infrastructure. Offering two rail stations along the North Jersey Coastline and Northeast Corridor lines, there are numerous local and regional NJ Transit bus routes citywide. Elizabeth also offers direct highway access to the New Jersey Turnpike, I-95, I-78, US Routes 1/9 and Routes 22, 27, 28, 82 and 439.

“In Elizabeth, well-maintained mid-sized properties such as these are in demand among investors because they have been virtually unaffected in terms of occupancy and rental rates by the current economic conditions,” said Uranowitz. According to Gebroe-Hammer, average rental rates for this segmented property class are $800 to $900 for one-bedroom and $950 to $1,100 for two-bedroom units. Occupancy rates exceed 95 percent.

Gebroe-Hammer is the region’s dominant brokerage firm specializing in the sale of multi-family, retail and commercial properties throughout New Jersey, New York and Pennsylvania, including Philadelphia. Clients include private owners, REITs, private equity firms and other institutional investors.

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Gebroe-Hammer Associates
2 West Northfield Road, Suite 301
Livingston, NJ 07039
Phone: 973-994-4500
Fax: 973-994-9752