Buoyed by Strong Multi-Family Demand, Gebroe-Hammer Associates Arranges 34 Deals/$121+ Million in Sales in Q1'14
Driven by an improving economy and job creation, as well as changing demographics, the New Jersey/Pennsylvania/New York multi-family markets are surging from the standpoint of leasing and investment activity, according to Ken Uranowitz, president of Gebroe-Hammer Associates. The Livingston, N.J.-based investment brokerage firm kicked off the first quarter of the year recording $121+ million in sales involving a total of 1,957 units, 1,398 of which closed in March.
"The momentum generated in 2013 has continued with a bang leading into 2014, as demonstrated by our brokerage professionals' ability to bring such a high volume of deals to the closing table," said Uranowitz. "The recent dynamic shift in single-family homeownership and demographic profiles have created additional apartment-rental demand in the tri-state area's urban and suburban centers, where renting has become the more attractive, affordable residential living alternative.
"There is an interesting phenomenon occurring within the tenant pool - the new generation of ‘millenials' is gravitating toward the cities and inner suburbs, especially those adjacent to or within walking distance of mass transit, where they are more likely to rent an apartment than to buy a home," said Uranowitz. "In fact, this region has seen a slump in homeownership, while rental occupancy rates are more than 95 percent market-wide. Hence, there is increased interest from investors in any and all properties that make it to market."
For Gebroe-Hammer, these trends have resulted in a high velocity of investment sales brokered by the firm. In the last week of February and first week of March, the firm completed 10 transactions totaling 808 units. Nine of those 10 sales were in New Jersey, extending from Camden County in the south to Essex, Passaic, Bergen and Sussex counties in the north, with one in Pennsylvania. The firm closed out January with $31.15 million in total sales as the result of 10 transactions.
"Based on what we're currently seeing in the market from an investor standpoint, we expect these trends to continue and gain even greater velocity," said Uranowitz. "The year ahead is shaping up to be another strong one for the multi-family industry as a whole."
Gebroe-Hammer Associates specializes in suburban and urban high-rise, mid-rise and garden-apartment properties throughout New Jersey, New York and Pennsylvania, including Philadelphia. The firm also markets mixed-use and free-standing office and retail properties on behalf of a wide range of long-term clients, including private owners, REITS, private equity firms and other institutional investors. Widely recognized for its consistent sales performance, Gebroe-Hammer is a 10-time CoStar Power Broker.