7,080 Units Trade in 78 Deals across NJ, Eastern PA and Southern New York State
In a year of shifting health, safety and economic tectonics, Gebroe-Hammer Associates’ preparedness and ability to respond to fluid multifamily-investment client needs resulted in overall 2020 sales of $1.32B. In total, the New Jersey-based investment brokerage firm arranged 78 deals involving 7,080 units across New Jersey, Eastern Pennsylvania and New York State.
To kick off the year, the firm reported $316.4M in sales encompassing 1,574 units at the close of Q1 2020. When COVID-19 virtually halted all other business sectors by mid-March, Gebroe-Hammer continued to close deals at a pace unmatched by its competitive set. As the year concluded, the firm finalized 12 deals in December alone, which totaled $173M for the month.
“The rippling effects of last year affected every facet of society and business, thus warranting an even greater level of connectivity with our clients via electronic or socially distanced means,” said President Ken Uranowitz, who was named a Best Boss 2020 for leadership during uncertain times. “While very different from all other cyclical shockwaves encountered during our 45 years in the multifamily investment sales sector, the pandemic prompted us to employ an agile approach.”
Key sales from Q2 to Q4 included the $64.9M trade of 269+ units across Middlesex County; $43.45M sale of Bayside Cove (South Amboy); $25.5+M sale of 87 Class A units (Woodbridge Township); $25.35M sale of Hamilton House (Weehawken); and the $23.75M sale of Fairmount at McGinley Square (Jersey City).
December’s 12 transactions included the $58M sale of a 144-unit multifamily portfolio (Hudson County), 175 apartment units sold for a combined $18M (South Jersey Metro/Greater Philadelphia area) and the $17M sale of a nine-property, 133-unit portfolio (Passaic County).
“Our strategy included capitalizing on longstanding relationships, instilling confidence in an uncertain environment based on decades of downturn experience, and overcoming major obstacles – albeit logistical, governmental and most importantly, maintaining positivity – to leave no stone unturned to get deals over the goal line,” said Uranowitz.
A Look Ahead
Tallying $1.32B in sales in one of the most challenging years sets the stage for 2021, during which demand for apartment buildings will continue to strengthen. Long acknowledged as the most stable real estate investment vehicle, multifamily benefits from a tenant pipeline that is expected to remain robust notwithstanding a shift in home base.
“What we are seeing in many suburbs, including fringe cities of major metropolitan centers, is a migration of former big-city dwellers now working from home,” said Uranowitz. “Whether this is a temporary or permanent phenomenon remains to be seen.”
While the rollout of vaccines and an accommodative Fed interest-rate policy are expected to relieve any residual aftershocks from COVID-19, multifamily will continue to experience limited exposure as compared to other real estate classes.
“Despite the complex economic variables of the pandemic, multifamily investments benefit tremendously from their fundamental function as one of the most reliable residential options,” said Uranowitz. “As such, the wide delta between multifamily investment demand and for-sale product availability is expected to persist throughout 2021 and into 2022.”
Since 1975, Gebroe-Hammer’s brokerage activities have concentrated on all multifamily types including Class A, B and C high-rise and garden-apartment properties. While initially focusing on New Jersey, the Livingston, N.J.-based firm has evolved during the past 45 years to also dominate Eastern Pennsylvania and New York State submarkets as well as represent client interests nationally. Widely recognized for its consistent sales performance, the firm is a 17-time CoStar Power Broker.
