Gebroe-Hammer Scores Double Play with $113M Multifamily Deals

SPRINGFIELD AND MORRISTOWN, NJ– Two separate multifamily transactions turned into a record-setting $113.5 million double-play for Gebroe-Hammer Associates. The sale of the properties, which were owned by Forest Realty for more than 40 years, represents one of the state's largest multi-family transactions recorded in 2015 thus far, and underscores the continued boom in the multifamily market.

Gebroe-Hammer represented Forest Realty in the estate sale of two separate multifamily properties in Springfield and Morristown, N.J. The firm's brokerage teams, led by managing director Joseph Brecher, also found buyers for Short Hills Village Club (Springfield) and Franklin Manor (Morristown).

“Both of these well-maintained properties are at the center of it all in terms lifestyle amenities and access to mass transit, shopping and dining,” says Brecher. “Springfield and Morristown are highly desirable multi-family investment markets due to the strength of their tenant pool, sustained population growth and proximity to employment centers and some of the state's largest employers, such as Bayer and Honeywell.”

Short Hills Village Club, which was acquired for $83.5 million by SH Club Village, LLC, is a unique 286-unit garden-apartment and townhome community located at 67A Forest Dr., on the Millburn/Short Hills border of Springfield. The 26-building complex is comprised of three different phases, each of which has been newly renovated or newly constructed in the past five years.

The community features a mix of one- and two-bedroom layouts with basements or lofts as well as one-to-two baths. Townhome-style living options range from two-to-four bedrooms with two or two-and-a-half baths. In addition to spacious closets, air conditioning, modern kitchens and hardwood flooring, each unit has a washer and dryer. Seven laundry facilities, an on-site fitness center, swimming pool, playground, 489 parking spaces and 116 garages also are located throughout the 19.8-acre complex.

The second property, at 114 Franklin St. in Morristown, was acquired by RK Franklin LLC, for $30 million. Franklin Manor is a 140-unit garden-style apartment community located on a private road in a quiet, park-like residential neighborhood. Each of the spacious one- and two-bedroom layouts features hardwood floors, modern kitchens and air conditioning, with washers/dryers available in some apartments. Free on-site parking is available in a 177-space lot that also houses 57 garages.

“When properties of this caliber come to market in Union or Morris County – or any other northern New Jersey county for that matter – asking prices continue to trend upward and become even more competitive," Brecher tells GlobeSt.com exclusively. "This is the direct result of vacancy rates that remain low and rent growth that exceeds expectations. FreddieMac reports multi-family property fundamentals are as strong today as they were any time since 2000, and that is exactly what we are seeing.”

In addition to the Springfield and Morristown property trades, Brecher recently arranged the sale of the lease-hold interest for Forest Glen in Highland Park, NJ on behalf of the seller's estate.

Legal representation in the two latest transactions was provided by Thomas E. Cohn, Esq., of Coughlin Duffy LLP, in Morristown, N.J., on behalf of the seller; Steven D. Fleissig, Esq., of Greenberg Traurig in Florham Park, NJ, on behalf of the Springfield buyer; and Kenneth Gliedman, Esq., of Lichter, Gliedman, Offenkrantz PC in New York City on behalf of the Morristown buyer.