KRE Group’s Jeff Persky: Renovation May Be a Winning Strategy, But You Just Can’t Renovate Fast Enough

NEWARK, NJ — The first round-table discussion at CAPRE’s 2018 New Jersey Apartment Summit was a broad discussion of the New Jersey multi-family arena. Moderated by David Wolfe, Managing Partner at Skoloff & Wolfe, P.C. the panel featured the insight of numerous local insiders about the state and future of the New Jersey multi-family arena. Below, we highlight a brief snippet in which Wolfe asked one of his most active panelists, Jeff Persky, Executive Vice President at the KRE Group, to provide some candor on the Garden State. "So turning to Jeff, you guys are both active in multiple markets," remarked Wolfe. "Both in the Gold Coast and then throughout the suburban markets. So I’d love to get a bird’s eye view on the current state of the market." "I tend to agree with Adam [Altman, co-panelist and Managing Director, Partner, KABR Real Estate] in that I think the demand in Jersey City is still good," replied Persky. "It’s not as good as it was. Maybe it’s a little bit of an anomaly, it’s only occurred in the last 4-6 weeks. Our buildings are slowing down a little bit. But we’re still not experiencing any vacancy. You know, with our portfolio in Jersey City, we are looking at maybe 1% vacancy, and our rents are stable. I think they flattened out a little bit, but again, I don’t know if that’s a long-term trend or if it’s just a function…