2 West Northfield Road
Livingston, NJ 07039
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Release Date: 06/12/2008
UNION AND ESSEX COUNTY, N.J. MULTI-FAMILY HOUSING MARKETS THRIVE; GEBROE-HAMMER ASSOCIATES REPORTS SALES OF 164 UNITS FOR MORE THAN $12 MILLIONInvestor Demand High in Markets Where Product Remains Limited
LIVINGSTON, N.J., June 12, 2008 – Throughout New Jersey’s gateway counties of Essex and Union, Gebroe-Hammer Associates reports that multi-family housing investments soared in the first quarter to unprecedented levels as demonstrated by the sale of 164 total units for more than $12.075 million. The six separate transactions were orchestrated by the Livingston, N.J.-based multi-family investment property brokerage firm on behalf of new investors as well as long-term clients.
“Essex and Union County both offer a balance of high-density residential, commercial and retail centers in close proximity to major public transportation corridors – all of which have extremely strong appeal among today’s multi-family housing investors,” said Ken Uranowitz, Gebroe-Hammer’s managing director. “In addition, these areas are undergoing intensive economic development, which further enhances the investment and rent appreciation potential.”
The largest transaction was in Union County and involved the sale of 43 units, comprised of 26 one-, 6 two- and 4 three-bedroom layouts plus seven retail stores, for $3.385 million at 1607-1615 Maple Ave. in Hillside. Gebroe-Hammer’s David Jarvis, senior vice president, and Avi Oren, vice president, represented the seller, Hillside Equities LLC, and procured the buyer, a long term Gebroe-Hammer client.
“The property, which is well-maintained, was 100 percent occupied at the time of sale, reflecting the area’s strong demand for apartment-rental living in close proximity to mass transit,” said Oren. Located on the northern edge of Union County, Hillside offers NJ Transit bus service to New York City and New Jersey destinations. The Garden State Parkway, U.S. Route 22 and I-78 transverse through the township.
In Elizabeth, just east of Hillside, Uranowitz and area sales associate Steven Tragash represented the seller, 80-82 DeHart Associates LLC, in the $2.3 million sale of 80-82 DeHart Pl. Sales associate Elliot Schechter procured the buyer, a Gebroe-Hammer investment client. Located adjacent to the city’s Elmora section, the 32-unit, three-story all-brick building offers a mix of one- and two-bedroom units within a short distance to shopping centers, schools and transportation.
“Elizabeth, the fourth largest city in New Jersey, is undergoing its own renaissance,” noted Uranowitz. “Along with a strategic location at the crossroads of several major roadways and rail service lines, Elizabeth is at the forefront of in-demand multi-family housing markets because of its strong tenant base and investment opportunities.”
Rounding out Gebroe-Hammer’s Union County transactions is the $830,000 sale of 546 E. Blanke St., a 10-unit, two-building complex in Linden. Adam Kushins, sales associate, collaborated with Oren to orchestrate the deal.
Essex County Retains Its Prominence Among Investors
Essex County also continues to experience abundant activity, where the availability of for-sale product is surpassed by demand among investors. High-density urban areas like Irvington reflect this trend. A long-time Gebroe-Hammer client recently sold 682 Chancellor Ave, an 80-year-old, three-story walk-up, for $760,000. David Oropeza, executive vice president, and Elliot Schechter, area sales associate, handled the disposition and procured the buyer, a New York-based real estate investor. The 13-unit property, which includes three retail shops, is in good condition and offers close proximity to the Garden State Parkway.
“Industry-wide, there is a large gap between the limited number of properties on the market versus the high number of well-financed investors seeking a stable, controllable long-term asset,” noted Jarvis, who recently closed a $3.1 million sale on 41 units at 324 Mt. Prospect Ave. in Newark. “With little to no new construction slated for multi-family housing county-wide, competition for high-quality existing properties is at a premium. Many investors are rehabbing their acquisitions to leverage higher rents.”
In suburban Bloomfield, the new owner of 24 Jersey St., a 25-unit four-story walk-up, is planning upgrades to the 70-year-old property’s hallways and lighting. Located between Bloomfield Avenue and Broad Street on the Glen Ridge border, the well-maintained property is 95 percent occupied and within a quarter of a mile of the Garden State Parkway. The seller, a private individual, was represented by Gebroe-Hammer’s Uranowitz, who originally sold this property to the seller over 30 years ago, while the buyer, a northern, New Jersey-based investment firm, was procured by Alan Lieberman, vice president. The property sold for $1.7 million.
“Recent reports indicate foreclosures on single family homes continue to soar despite governmental and mortgage lending efforts to reverse this trend,” said Uranowitz. “As a result, more and more ex-homeowners and renters are seeking apartment units that meet their financial and lifestyle needs. At the same time, long-time owners have decided to sell to leverage the value of their properties and market them aggressively, at premium prices, to net the highest financial return.”
2 West Northfield Road, Suite 301
Livingston, NJ 07039