Reynolds Terrace in Orange, a 120-unit apartment property that recently sold for $16.65 million as part of a sale brokered by Gebroe-Hammer Associates — Courtesy: Gebroe-Hammer Associates
By Joshua Burd
Gebroe-Hammer Associates is touting the sale of nearly 3,600 apartments during the third quarter, having inked 28 transactions with a combined value of more than $560 million.
The Livingston-based brokerage said Tuesday that investor appetite for multifamily assets remained strong heading into the final stretch of 2019. Buyers continue to chase both older, value-add projects and newer projects, thanks in part to an extended run of rent growth.
Through September, Gebroe-Hammer year to date had closed 93 deals involving 9,232 units, which sold for a combined value of more than $1.38 billion. The firm also said it was anticipating several key closings at year-end.
“Investors — from private equity funds and institutional entities to private individuals and family offices — are upping their acquisition ‘game’ throughout the New Jersey, Greater Philadelphia and New York State metros as the end of the year draws closer,” said Ken Uranowitz, the firm’s president. “Investors are seeking multifamily properties primed for capital improvements and/or recently delivered new-construction properties that serve as neighborhood redevelopment anchors.”
He added that seasoned owners, including equity funds that are aligning themselves with local operators, are generating the highest velocity of activity.
“Regardless of vintage or class, multifamily investments across the board are poised for asking-rent and property value acceleration,” Uranowitz said.
Gebroe-Hammer’s 28 sales from July through September comprised 3,557 units, the firm said. Highlights in top submarkets included the sale of 1,298 units for more than $199 million in Essex County, 760 units for $140.4 million in Bergen County and 198 units for $53.9 million in Hudson County.
“Throughout Essex County — particularly East Essex — multifamily investment interest is at an all-time high because of the sweeping revitalization initiatives that are no longer just a concept,” Executive Managing Director David Oropeza said. “Gebroe-Hammer has dominated these submarkets, especially The Oranges and Newark, from day one of its founding and our team continues to identify future investment opportunities.”
The firm also recorded deals in municipalities such as Bloomfield, Chatham, Clifton, Fairview and a host of others. In greater Philadelphia, Gebroe-Hammer inked sales during Q3 involving a total of 519 units for $83.25 million.
“Demand has kicked in throughout the Greater Philadelphia Metro, which includes Philadelphia proper as well as South Jersey and the city’s northern and western suburbs,” said Joseph Brecher, an executive managing director with the firm. “While Philadelphia has been steadily drawing new multifamily investment during the past 10 years or so, vacancies are dropping and annual average rent growth has risen to +4.6 (percent) — all good indicators of an ever-strengthening metro.”