NEW JERSEY M A R K E T U P D AT E OCTOBER 2023
Welcome to Berkadia’s ‘NJ Market Update’ newsletter, your go-to source for the latest developments, trends, and insights in the dynamic world of commercial real estate. In this newsletter, we aim to provide you with a comprehensive overview of the most significant happenings in the industry, keeping you well-informed and up to date.
Following Approval, The Atlantic Club Redevelopment Moves Forward in Long Branch Jersey Digs, September 28, 2023 “Our vision for The Atlantic Club is to bring a meticulously crafted residential enclave: an art ecosystem inspired by beach serenity and charm, but with an urbane sense of style and elegance,” said Stillman Development International President Roy Stillman. “The Jersey Shore was America’s first fully developed coastline and The Atlantic Club harkens back to the golden age of the Shore and is on par with the very best of world-class coastal living.”… Long Branch, home to notable revitalizations like Pier Village, has started to emerge as an under the radar development hot spot as of late. Several multi-family projects on Second Street and Third Avenue have recently broken ground in the city, which is situated about halfway between Sandy Hook and Asbury Park.”
Parking at multifamily properties is overbuilt, Rutgers study finds, highlighting need for new state guidelines Real Estate New Jersey, September 20, 2023 “The results of this objective research provide conclusive and compelling data that can and should be utilized by both the public and private sector,” said Debra Tantleff, a member of the Center for Real Estate’s executive committee and the founding principal of Jersey City-based TANTUM Real Estate. “A thoughtful and intentional approach to reduce parking requirements will benefit municipalities, planners, developers/operators and, importantly, the end user while creating a pathway to address larger affordability challenges that we face as a state and country.”
NJ leaders offer conflicting courses to combat congestion pricing plan NJBIZ, September 11, 2023 “Gottheimer stressed that the lawsuit filed by the state is calling for a more in-depth study because of all of the potential ramifications – arguing that the U.S. Department of Transportation and Federal Highway Administration (FHWA) violated the National Environmental Protection Act, which requires a full environmental impact review for projects of this anticipated impact and scope, as well as the Clean Air Act. Gottheimer said that the FHWA essentially flipped New Jersey the bird during the review process. “They basically saw the facts. They saw the devastating impact it would have on families and health – and still decided to drive ahead without actually doing the proper study they should have,” said Gottheimer. “And that’s what this lawsuit is going to try to understand – why?”
Berkadia New Jersery Team
Market Update October 2023 |
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Mulberry Commons Pedestrian Bridge, unifying symbol for Newark, breaks ground ROINJ, September 19, 2023 “There are a million reasons why this project is incredibly important to the city of Newark,” Baraka said. “From environmental issues and green space to addressing our heat islands to recreation, community unity, walkability, quality of life, pedestrian access, auto safety, air quality, making sure we have access to recreation to our sports and entertainment, our food and beverage — all these things that connect communities is an incredible reason why we need to have this.”
NYC and its suburbs won’t build new housing, so New Yorkers are flooding into Jersey City and driving up prices Business Insider, September 30, 2023 “Between 2010 and 2018, Hudson County, which includes Jersey City, built housing at more than twice the rate that New York City did. Jersey City’s population grew by nearly 60% from 2010 to 2020. Many of the old rail yards and factories on the city’s waterfront have been replaced with luxury high-rises. But amid the city’s home-construction boom — a “renaissance,” as the city’s mayor, Steven Fulop, previously described it to Insider — rents are rising fast. The rental platform Zumper lists Jersey City as the secondmost-expensive US city to rent an apartment, and rents for a two-bedroom apartment are up 25% year over year.”
How much money you need to make to be in the top 1% in every U.S. state— it’s nearly $1 million in Connecticut CNBC, September 30, 2023 “The Northeast dominates the rankings, with five of the 10 states with the highest 1% thresholds lying in this region. The average income needed to be in the 1% is $696,358 in these states. That’s a higher income than is needed to be in the 1% of households nationwide, which is $652,657, according to SmartAsset.”
North Jersey is the 3rd-most-competitive rental market this season ROINJ, September 28, 2023 “According to the latest report, notoriously competitive North Jersey fell to third place this season, surpassed by Miami and Milwaukee, thanks to the biggest increase in new apartments nationwide. But that doesn’t mean renting suddenly became a walk in the park here, as the competitive score of this market stays at 113, double the national average. What it meant for renters to seek an apartment in North Jersey this high season: The metro saw a 1.2% increase in recently built apartments, which is the main reason behind the slight relaxation. For comparison, Manhattan built no multifamily rentals, amid a housing shortage.”
Berkadia New Jersery Team
Market Update October 2023 |
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OCTOBER FEATURE Essex and Union Counties Will See Total Luxury Inventories More Than Double From 2020 Levels 9000
160%
8000
140%
7000
120%
6000
100%
5000
80%
4000
60%
3000
40%
2000 1000
20%
0
0%
ESSEX
UNION
MORRIS
SOMERSET
Luxury Units Still Under Construction Luxury Units Built Since 2020 Total Growth in Luxury Inventory Since 2020 Source: CoStar
Berkadia New Jersery Team
Market Update October 2023 |
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NEW JERSEY Investment Sales
Berkadia New Jersey Investment Sales, led by Nat Gambuzza, provides a depth of advisory and transaction services for income generating properties that is unparalleled in the industry. Their clients include private investors, partnerships, lenders and institutions of various net worth. The team has specialized expertise and excels in the most complex transactions, including portfolio sales, distressed property sales, note sales and time-sensitive 1031 tax exchange transactions. Prior to joining Berkadia in 2022, the team worked at two otherwise national real estate investment services firms
Nat Gambuzza
Spencer Beriont
Trevor Fiebel
Tim Blashford
Senior Managing Director
Senior Director
Senior Director
Director
973.809.1755
908.328.4494
908.285.6921
201.396.6253
862.309.5619
nat.gambuzza@berkadia.com
spencer.beriont@berkadia.com
trevor.fiebel@berkadia.com
tim.blashford@berkadia.com
mike.o’reilly@berkadia.com
Brian Antognini
Nick Balancia
Andra Theriot
Senior Transaction Manager
Associate Director
Marketing Project Manager
862.309.5618
908.642.1905
346.444.8972
brian.antognini@berkadia.com
nick.balancia@berkadia.com
andra.theriot@berkadia.com
Mike O’Reilly Senior Financial Analyst
NEW JERSEY Mortgage Banking
Josh Lipsey Senior Director 201.577.1909 josh.lipsey@berkadia.com
Berkadia New Jersery Team
Market Update October 2023 |
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