"Investors are very actively seeking top-quality multifamily properties throughout Elizabeth because of the community's solid working-class tenancy, high foot traffic and unique sense of a suburban community within what is actually New Jersey's fourth largest city," says the firm's sales associate and area specialist Stephen Tragash. "Apartment building owners, many of whom have held properties in the area for generations, realize the time is right to sell. This is because interest rates remain low, the willingness of lenders to finance multifamily investments due to their proven long-term performance and a looming change in the capital gains tax at year-end."

Owned by the same family for 25 years, Gebroe-Hammer served as the exclusive broker for the Westfield Avenue property, which offers a mix of one- and two-bedroom units. In addition to representing the seller, Tragash procured the buyer, a longtime client whose portfolio includes other buildings throughout Union County. To finalize the transaction, Gebroe-Hammer also negotiated the modification of a ground-lease agreement with Conrail, which owns adjacent land, for parking facilities.

The firm also negotiated the sale of 84 additional units in two separate transactions within the Elmora neighborhood. Joel Schwartz, executive vice president, represented an unnamed buyer in the $4.8 million, all-cash sale of 62 units at 516 Cherry St. Schwartz, along with Tragash, represented the seller, the heirs to the original builder who have owned and operated the building for the past 47 years. At 511 North Ave., Schwartz represented the seller while Tragash identified the buyer, a longtime client, who acquired the 22-unit, mid-rise building here for $1.54 million.

As a center of retail, transportation and employment due to its proximity to Jersey Gardens Mall, the Port of Elizabeth, Newark Liberty Airport and several other major industries, Elizabeth has embraced an economic revitalization program that is transforming the waterfront into a shopping and business development hub. "The restoration and addition of parks, new recreation facilities and appealing neighborhoods have positioned Elizabeth for a revitalization initiative like no other," adds Tragash.

"In Elizabeth, well-maintained, mid-sized properties such as these are in demand among investors because they have been virtually unaffected in terms of occupancy and rental rates by the current economic conditions," says managing director Ken Uranowitz. According to Gebroe-Hammer, average rental rates for this segmented property class are $800 to $900 for one-bedroom and $950 to $1,100 for two-bedroom units. Occupancy rates exceed 95%.

Instant Insights /

Gebroe-Hammer Closes MF Deals in Elizabeth

Related Stories

Recommended For You