RIDGEFIELD PARK, NJ– Gebroe-Hammer's latest multi-family trade in Bergen County caps off a 12-month period in which the firm handled $18 million in investment sales in the county, GlobeSt.com has learned.

Marcus & Millichap confirms that sales have been surging - and apartment vacancy tightened to exceptional lows - in northern New Jersey.

There have been 13% more trades made in the northern part of the state over the last 12 months compared to the year before as investors scrambled to beat a rise in interest rates, says the firm's Thomas McConnell.

"Last year, the median sales price dropped 5% to $80,500 per unit as investors
focused on smaller, older properties in the region that would give them higher yields," says McConnell. "Average cap rates declined 20 basis points during the last year to the low-6% range as bidding activity intensified, particularly in Bergen County, which accounted for the majority of the drop in cap rates," he adds.

The most recent trade handled by G-H was the $2.025 million sale of 15 units at 82 Brinkerhoff St. in Ridgefield Park.

“Historically, whenever a property comes to market in this Northern New Jersey county, investors – from private individuals to institutional – take notice,” says G-H's Debbie Pomerantz, who represented the buyer.

She says sellers are motivated: “Sale prices are highly competitive, if not aggressive, with today's sellers realizing a significant return on their original investment.” Pomerantz worked with colleague David Oropeza on the deal. Oropeza exclusively represented the seller, a long-time client.

Earlier this week, the Hackensack-based company Alfred Sanzari Enterprises reported that vacancy levels at its Bergen County mult-family properties hit a record low of about 1%, after declining sharply over the last 12 months. (see GlobeSt. com story here).

McConnell says he expects apartment vacancies to remain very low throughout northern New Jersey this year because of the "New York effect."

"By now the skyrocketing rents in Manhattan have become well-publicized, and they are
actually encouraging some renters to move across the Hudson in search of lower-cost
housing options."

The 15-unit Ridgefield property sold by G-H has both one- and two-bedroom units, on-site laundry facilities and updated kitchens and baths.

G-H says its other recent sales include: 50 Anderson Street and 430 Union Street in Hackensack, with a combined total of 66 units, sold for $8.65 million and 12 units at Palisades Manor in Palisades Park.

Livingston-based G-H handles multifamily trades in New Jersey, New York and Pennsylvania, including Philadelphia.

Instant Insights /

Bergen M-F Is Hot: Tight Vacancy, Torrid Sales

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