CB New Homes Experiences Significant Growth in Apartment Market
Madison, NJ, June 2016: CB New Homes, a division of Coldwell Banker Residential Brokerage, has firmly established itself as one of the leading sales and marketing organizations in the homebuilding industry. Under the leadership of David Schoner, Vice President of the Coldwell Banker New Homes Division, CB New Homes has been providing sales and marketing services for homebuilders in the tri-state area for over 25 years, including critical information about design trends, consumer preferences, product development and targeted competitive data.
In the last few years, however, an interesting phenomenon has taken place in the residential market. Increasingly, more and more people are choosing to rent, with the growth of multifamily rental apartment buildings exploding, particularly since the housing market crashed in 2009. According to a recent story from National Real Estate Investor, because of the lead time necessary to build new projects, the supply of new apartment buildings “did not start to rebound until 2013, after which new supply accelerated, adding 194,500 units in 2015, with another 258,000 units expected this year.” (“How Apartment Amenities Have Changed over the Years,” nreionline.com, May 26, 2016). The New York metropolitan area, where CB New Homes is based, is one of the markets where much of this new construction has been concentrated.
It’s not surprising, then, to learn that CB New Homes has experienced significant growth in the apartment rental market in recent years, while maintaining its leadership in the new home sector, as well. Along with this growth has come unprecedented success in marketing and leasing new apartment projects in the area, according to Schoner, who is responsible for directing the firm’s sales and marketing efforts on behalf of builders throughout New York, New Jersey, Connecticut and Pennsylvania, a territory that spans over 110,000 square miles.
“Our growth at CB has mirrored what’s been happening in the apartment market since 2009,” Schoner said. “We’ve been able to successfully transition from being a firm that focuses primarily on selling condominiums and townhomes, into one that offers product development and full-scale marketing and leasing programs for large apartment buildings, in urban and suburban markets. It’s been an exciting line of growth for us.”
CB’s approach is a bit different from other firms, which Schoner says accounts for its success. “We typically get involved much earlier with a new project than other companies would,” he explained. “We do feasibility studies to ascertain market demand for a particular area, by product line and demographics. This helps builders identify who their target market should be, how they should position their apartment project to appeal to the target market, and to identify who their competition is. We can develop rental estimates based on current market conditions. We can make specific recommendations on design factors, based on what we know the market is looking for. And with our strong emphasis on market research, we’re able to put together a very comprehensive marketing and leasing strategy for developers that’s much more thorough than what they might get from other companies.”
Once a sales and leasing strategy has been put in place, CB New Homes can provide and train a dedicated leasing team to work on site with apartment developers. The firm can also handle the coordination of all necessary marketing and professional services that may be required for the apartment project, from interviewing and working with companies that provide signs, to merchandising companies, sales center companies, ad agencies and more. It’s a comprehensive approach that has already proven successful for a number of apartment developers in the region.
Nowhere has this experience and strategy proven to be more successful than in CB New Homes’ work for 221 Bergen. This boutique building of 104 luxury apartment rentals in Harrison, NJ, from developer CrownPoint Group, was fully leased just eight months after opening its doors last year. The CB New Homes team was able to pre-lease 25% of the community before the Certificate of Occupancy was granted, representing $843K annually. 50% of the building was leased up in the first two months, and with an average of 20 leases per month, the project was on track to full lease-up in two-thirds of the time originally pro-forma’d. “Competition was heavy,” Schoner said, “but we did our research to find out what was important to our target audience. As a result, we were able to provide our input into the home designs and to distinguish 221 Bergen with the luxury features and amenities that mattered most to this group of young professionals.” Thanks to the successful efforts of Schoner and his CB New Homes team at 221 Bergen, the firm has been able to leverage its apartment services and experience into two more new projects.
Additionally, in large part due to the success of 221 Bergen, CB New Homes was honored this spring with three prestigious SAM (Sales and Marketing) Awards from the New Jersey Builders Association (NJBA). Sales Associate Leslie Newlands was named Sales/Leasing Manager of the Year. Newlands’ son and fellow CB Sales Associate, Zachary Newlands, was named Rookie of the Year for his work at 221 Bergen. And one of the evening’s most prestigious awards, Marketing Director of the Year, was presented to Schoner.
Upcoming apartment building projects for CB include 333 Central Avenue in Westfield (70 units) and Rose Hall in Madison (100 units). Both are in various stages of construction and will come to market in 2017, with Westfield expected to open first. Schoner sees this tremendous growth in the apartment rental sector as a natural extension of business for the firm, as more and more developers recognize what homebuilders have already discovered about CB New Homes’ unique approach. “Whether it’s a new home community or an apartment project, we always start with the research. But we also bear direct responsibility for sales and leasing – and that’s a key difference. It makes us much more accountable for the success of an apartment building or community. If our research is comprehensive and accurate, our marketing efforts to attract renters and our leasing efforts to sign them will undoubtedly be successful.”
Apartment builders and developers in the tri-state region interested in learning more about the innovative, successful approach of CB New Homes can visit www.cbnewhomes.com. For a consultation to see how CB can make a difference in the success of your apartment project, call David Schoner at 973-407-5460, or email email@example.com.
Coldwell Banker Residential Brokerage in New Jersey and Rockland County, New York, a leading residential real estate brokerage company, operates 58 offices with more than 3,000 sales associates serving all communities from Rockland County, N.Y. to Monmouth County, New Jersey. Coldwell Banker Residential Brokerage in New Jersey and Rockland County, N.Y. is part of NRT LLC, the nation’s largest residential real estate brokerage company. Visit www.coldwellbankermoves.com for more information.