Low Vacancy, Modest Construction Feed Gebroe-Hammer Central NJ MF Sales
“Each of these Monmouth County class-B properties is poised for value-add enhancements and are among the most attractive asset class for investors, particularly since they account for almost 64% of the Central Jersey metro’s total inventory,” says Gebroe-Hammer's Adam Zweibel.
PERTH AMBOY, BRADLEY BEACH, EATONTOWN, NEPTUNE, NJ—Central New Jersey’s record-low multifamily vacancy rates and modest construction boom continue to boost apartment-building investments, according to Livingston, NJ-based Gebroe-Hammer Associates.
Gebroe-Hammer has brokered several multifamily sales totaling $20.32 million and 118 units throughout Perth Amboy, Bradley Beach, Eatontown and Neptune. Gebroe-Hammer exclusively represented the sellers and/or procured the buyers.
“With over 177,000 apartment units, Central New Jersey is an extremely attractive metro thanks to its historically stabilized occupancy-rate track-record—which is projected to exceed 97% through 2022—and continued run of moderately rising rents,” says Adam Zweibel, vice president and the firm’s area market specialist.
Within the East Middlesex submarket, senior vice president Debbie Pomerantz and Zweibel arranged the $5.625 million trade of Spring Cove Apartments, a newly constructed 38-unit 55-and-over apartment-home community. Centrally located at 75 New Brunswick Ave., the four-story property features an array of amenities that appeal to today’s active empty nesters and retirees. The gated Spring Cove Apartments includes attractive community spaces such as a lounge and activity area, in-unit washers and dryers, oversized windows, modern eat-in-kitchens and ceramic-tile and plush-carpeted floors.
In the Shore submarket, senior vice president Nicholas Nicolaou and Zweibel closed the $4.57 million sale of La Reine Arms, 201 Lareine Ave., in Bradley Beach. Just one block from the borough’s popular oceanfront boardwalk, the five-story property features a mix of studio and one- and two-bedroom units ranging from 500 to 1,000 SF. La Reine Arms is situated less than a half mile from Bradley Beach Station, offering North Jersey Coast Line train service.
In nearby Eatontown and Neptune, Zweibel also finalized the trades of Throckmorton Apartments, a 20-unit garden-style community at 73 Throckmorton Ave., and 248-250 Myrtle Ave., a 22-unit complex with a mix of one and two bedroom layouts.
“Each of these Monmouth County class-B properties is poised for value-add enhancements and are among the most attractive asset class for investors, particularly since they account for almost 64% of the Central Jersey metro’s total inventory,” says Zweibel.
According to Reis, a proprietary commercial real estate database, no competitive apartment stock is expected to be introduced to the Shore submarket between now and year end. As a result, the vacancy rate is expected to hover around 2.7% at the close of 2018 and 2.5% to finish 2019. Year-end 2018 asking rents are expected to advance 1.5% while effective rents will climb by 1.9%. On an annualized basis through 2019 and 2020, asking and effective rents are anticipated to rise by 2.2% and 2.0%, respectively.
Correction, 12:04 p.m., 7/16/2018: Because of incorrect information supplied to GlobeSt.com, an earlier version of this story reported that executive vice president David Jarvis was part of the brokerage team involved in the Spring Cove Apartments transaction. It was actually senior vice president Debbie Pomerantz.