Gebroe-Hammer Associates, which specializes in multi-family, retail and office property investment sales, recently finalized a nonperforming bank note sale secured by a 70-unit garden apartment complex.
The $2 million note sale occurred in Gloucester County, N.J. The lender for the transaction was an unnamed New York-based bank, while the buyer was a local investor.
The property offers a mix of one- and two-bedroom units, as well as on-site laundry facilities and parking. At the time of the sale, the complex was 93% occupied.
According to Joel Schwartz, executive vice president at Gebroe-Hammer Associates who was a member of the brokerage team representing the lender during this sale, the note buyer plans to implement a capital improvement program once title has been secured.
“This will render the complex more competitive, in terms of maintenance, amenities and rents, which are gradually rising throughout South Jersey,” Schwartz added. “Occupancy rates also are firming up thanks to the area’s strategic location and mass transit access to Philadelphia.”
Besides this note sale, the Livingston, N.J.-based firm has already orchestrated 11 other transactions on behalf of this lender. Gebroe-Hammer is also currently marketing various notes throughout the New York tri-state region.
“Despite the influx of nonperforming bank notes, which were anticipated as a result of the recession and now diminishing in velocity, multi-family properties are thriving, as evidenced by occupancies that are generally hovering in the high 90th percentile from Philadelphia and its South Jersey suburbs to New York and its Northern New Jersey suburbs,” said Ken Uranowitz, managing director at Gebroe-Hammer Associates. “All of the factors that have contributed toward multi-family’s strength and solid investment performance, including an unstable housing market and record-low interest rates, are expected to become even more robust as we move toward the end of the year and into next.”
