Opportunity Zones, Amenities, Common Areas Pushing the Tempo in NJ Multifamily | Saiber’s Phil Markowitz Previews CAPRE’s NJ Apartment Summit
JERSEY CITY, NJ — Philip Markowitz has extensive experience representing a variety of clients with respect to their commercial real estate investments and projects and related legal needs. Philip represents a number of national retail tenants with their many leasing matters. He also represents both sellers and purchasers of existing shopping centers and other retail properties, as well as developers and redevelopers of retail projects throughout New Jersey, but also significantly in New York, Pennsylvania and Florida. Philip is actively involved in the realm of hotel acquisitions and development, and the associated corporate aspects surrounding these types of transactions, including joint venture agreements, franchise agreements and management agreements. Philip will be a featured speaker at CAPRE’s New Jersey Apartment Summit December 4. In this piece we connected with Philip about his latest observations on the ground in the Garden State.
Markowitz: Saiber LLC is a 60-attorney business counseling and litigation law firm based in Florham Park, NJ. In addition to our transactional, real estate and land use practice groups, we also have a significant litigation practice. As a member of the real estate group, I focus on a variety of commercial real estate projects, including development, leasing, and acquisition work, as well as borrow side financing.
CAPRE: And in what markets are you most active?
Markowitz: We’re active throughout the state of New Jersey, in various development projects. Lately, I’ve been keeping very busy with a lot of real estate development in Jersey City, specifically ground-up, multi-family development. There are a lot of moving pieces and challenges in these deals, but I’m proud of them. Jersey City is continuing to attract investment and development – it’s still a strong market.
CAPRE: What are you looking forward to about CAPRE’s upcoming New Jersey Apartment Summit?
Markowitz: I look forward to hearing about the continued development of the Gold Coast, as well as elsewhere. Hudson County is thriving, and I’m excited to hear the perspectives from other professionals who intimately know the space. I’m also excited to moderate the 12:10 pm – 12:40 pm Luncheon Discussion, The Future of Multifamily Construction, Design & Development in New Jersey. We’ll discuss the future of multifamily construction and development in New Jersey, as it’s something I’ve been working on closely.
CAPRE: What are the most significant trends in New Jersey multi-family right now?
Markowitz: Opportunity Zones, though still early, are continuing to be a pretty significant topic of conversation, and they are finally moving from the theoretical to the practical. I’m doing an exciting new deal in an opportunity zone right now. As far as trends, transportation oriented development is a big deal, and that’s why Jersey City is so strong.
CAPRE: What type of amenities are you seeing in these multi-family development deals?
Markowitz: Amenities and common area amenities are also raising the bar in new developments. You’re seeing more rooftop areas – cafes or bars and even workshare spaces. That communal concept that you see in both the office market and the residential market is taking hold. Owners and developer are pursing those communal shared spaces.
CAPRE: What’s your take on the latest interest rate news? How will the rate cut impact the New Jersey apartment arena?
Markowitz: From the real estate development side and the acquisition side of things, it’s great. Rates will continue to remain low and I think we’ll continue (as a result of that and other factors) to remain in a growth cycle. We’re not in the beginning of the cycle, but we should continue to see some growth, and the cut is definitely one continuing factor.
CAPRE: We read so much about the New York City market under-performing. How is that impacting things on the other side of the Hudson River?
Markowitz: It is definitely impacting things in New Jersey. As the environment becomes more difficult in Manhattan for new construction, rehabbing existing buildings, and rent control, developers (and some institutional developers) are really looking over the river. New Jersey can continue to benefit from that.
CAPRE: What is the biggest change you’ve seen in New Jersey in recent memory?
Markowitz: From my perspective, over the last several years I’ve been seeing more institutional developers and institutional money coming into cities likes Jersey City and other locations on the Gold Coast. I’ve also seen this further west, in towns such as Morristown. I’ve really seen those institutional investors enter the market on a level that I did not witness several years ago.
CAPRE: Got it. We appreciate your perspective, Philip. We’ll see you December 4!
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