The Eider Group at Marcus & Millichap’s Post

New Jersey Multifamily Market Insight: Normalized Pricing and Strong Returns Amidst Shifting Investor Expectations “We are seeing value-add multifamily properties trade at or sub-6 cap rates and stabilize at high 7 cap rates, offering a 150+ basis point spread. New construction properties typically offer cap rates in the 6’s with upside such as on renewals. Despite what some may say about market trading, this peek behind the curtain shows strong activity in the multifamily sector,” says Chez Eider. Multifamily Highlights Recent activity includes 1,271 multifamily units across 11 properties. From small properties of 16 units to large portfolios of 664 units, the opportunities are diverse and enticing. With around half of these properties already under agreement, the demand is clear. “Unlike the days of ‘daytrading real estate,’ we’re now in a more normalized market where investors are taking a longer-term outlook,” Chez Eider explains. “Investors are using interest-only periods on value-add projects to generate cash flow while adding value. After two years, they benefit from increased income and the initial interest-only phase. Even when the loan transitions to amortization, the investment remains strong due to the enhanced property value and cash flow stability.” Development In addition to multifamily, The Eider Group is marketing 633 residential units across multiple development sites for sale. Office The Eider Group is also marketing several office buildings, an excellent occasions, that are well occupied and strong tenant mix. Ranging from 90,000 to 120,000+ square feet, with cap rates in the mid to upper 9’s. For current owners who haven’t yet met The Eider Group at Marcus & Millichap, let’s discuss your portfolio and explore the robust opportunities available. Active owners in the market and those who have met with us see deals on the VIP list before the broader market. This gives active players a significant edge in seeing the best opportunities first. There’s a strong buyer pool for multifamily properties, and not all properties need to be prime for selling. For investors looking to connect with The Eider Group to view the investment opportunities, contact Chez Eider Eider. Don’t miss out—join our email list to stay updated on these exclusive opportunities. #RealEstate #Multifamily #InvestmentOpportunities #BuilderToBroker #markettrends #marketinsights

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