SPRINGFIELD, N.J., Aug. 18, 2009 – Multi-family investments for small-to-mid-sized existing properties continue to surge throughout Northern New Jersey as evidenced by the recent $1.7 million trade of 45 – 51 Morris Ave., in Springfield, N.J. Gebroe-Hammer Associates’ Joel Schwartz, executive vice president, and Avi Oren, vice president, represented the seller, Walker Estates, Inc., and procured the buyer, a long-time Gebroe-Hammer client.
According to Oren, the transaction represents a prevailing trend for properties in the region that have been family-owned for decades. “Since being built in 1954, this complex is only being sold for the first time because the seller is retiring and relocating out-of-state,” he said. “The 30-day closing and all-cash sale, with no contractual contingencies other than clear title, is highly unusual.”
Gebroe-Hammer reports that several factors are driving multi-family housing investments, which are thriving as compared to other commercial real estate classes, including office, retail and industrial. “Well-financed investors favor existing multi-family properties that, if required or desired, can undergo upgrades to yield more competitive market-rental rates or be sustained with effective property management practices to retain high occupancy rates and quality on-site amenities,” said Schwartz.
“Because of Avi’s long-term relationship with the owner, Gebroe-Hammer was named the exclusive broker to market the property. At the same time, the buyer, who has acquired numerous properties over the years through Joel, recognized the enormous rent potential after performing a major exterior and interior renovation, as well as the rare opportunity to purchase an 18-unit multi-family building in the very desirable suburban community of Springfield, N.J.,” commented Ken Uranowitz, managing director.
Located in northern Union County, N.J., Springfield is a popular commuter hub due to its extensive mass transit network. Major highways and roadways include I-78, Routes 22, 24, 122 and the Garden State Parkway. NJ Transit offers bus service to the Port Authority Bus Terminal in Midtown Manhattan and Newark Penn Station and rail stations are available in nearby Millburn, Short Hills, Maplewood and Summit.
Featuring a mix of one- and two-bedroom apartments, 45 – 51 Morris Ave., is a two-and-half story property with on-site laundry and parking facilities. Planned upgrades include new windows, an enhanced electrical system, new heating and air conditioning and exterior landscaping.
The area’s average rental rates are $1,000 for one-bedroom and $1,150 for two-bedroom units, according to Livingston, N.J.-based Gebroe-Hammer. Average occupancy rates are 90 percent.
Legal counsel was provided by Clara Harelik, Esq., of Springfield, and Ray Londa, Esq., of Elizabeth, on behalf of the seller and buyer, respectively.
Gebroe-Hammer Associates is the region’s leading real estate investment brokerage firm specializing in the sale of multi-family, retail and commercial properties. In addition to its strong presence in New Jersey, Gebroe-Hammer is active throughout Pennsylvania, including Philadelphia, and New York. Clients include private owners, REITS, private equity firms and other institutional investors.