ELMWOOD PARK, N.J., Oct. 18, 2011 – Nat Gambuzza (top right photo) and Lauren Federgreen (middle left photo) of Marcus & Millichap Real Estate Investment Services, the nation’s largest real estate investment services firm, has negotiated nearly $99 million in multifamily investment sales totaling 1,290 units in the first three quarters of 2011, according to Michael J. Fasano (middle right photo), vice president and regional manager of the firm’s New Jersey office. In all, Gambuzza, a vice president investments in the New Jersey office, and multifamily investment specialist Federgreen, have closed 22 transactions – including one land loan sale – since January.
Some transactions of note include the sale of an 11-building portfolio totaling 172 units in Rahway, N.J. The properties, which were sold by the original developer, commanded a purchase price of $13,700,000 or $79,651 per unit.
Another notable transaction includes the sale of Stoneybrook Gardens in Plainfield, N.J. The 70-unit garden complex traded for $5 million.
“This transaction faced several hurdles due to the fact that most similar properties in the area are and were in some sort of distress,” says Gambuzza. “We had to overcome that by ensuring the quality of the asset, the value-added component and the ease of being able to finance the transaction.”
The majority of transactions closed by Gambuzza and Federgreen involved private investors vying for smaller multifamily assets, distressed deals including loan sales and REOs, and large Section 8 housing complexes.
“There is pent up demand for apartment buildings of any type in both Northern and Southern New Jersey as interest rates continue to drop,” says Federgreen. “I am sure this will elicit a flurry of transaction activity in the second half of 2011.”
“As a result of this low interest-rate environment and continued fear among investors to place their capital in the volatile stock market, we are seeing a lot of new partnerships and groups teaming up to acquire properties,” says Gambuzza.
“Specifically, we are seeing a number of syndicators and 1031 exchange investors stepping up their activity levels in the market. Strong multifamily fundamentals haven’t hurt us either. We are seeing vacancy rates dip below 5 percent and rents beginning to grow again.”
“Local, out-of-state and even foreign investors are active in the New Jersey apartment market,” Gambuzza continues. “In addition to seeing out-of-area purchasers acquiring multifamily product, we are seeing a shift within the state: North Jersey buyers are now looking at South Jersey in an effort to purchase at a lower price per unit.”
For example, Gambuzza and Federgreen satisfied a 1031 exchange investor’s requirements by trading Riverside Gardens, a 30-unit apartment complex in Rahway, N.J., at a price of $2,550,000 or $85,000 per unit, for the 80-unit Haddon Crossings complex in Haddon Township, in Southern New Jersey which sold for $4,900,000 or $61,250 per unit.
In another transaction, a two-property portfolio located in Haddon Heights and Oaklyn, both Southern New Jersey towns, was sold by an investment group to a North Jersey investor.
Gambuzza and Federgreen have also played a role in some larger project-based Section 8 complexes that have traded within the past nine months.
Contact: Stacey Corso, Public Relations Manager, (925) 953-1716
No comments:
Post a Comment