Robert Lipson, Managing Director, Berkadia
In an interview with Invest:, Robert Lipson, managing director of Berkadia, said the company takes the long view regarding strategic expansion in New Jersey’s multifamily market, the return of institutional investors, and its technology-driven approach to real estate and business incubation. “We invest in our people and we invest in technology. We are not interested solely in one single deal; rather, we are interested in all the deals that come afterward,” Lipson said.
Berkadia has recently been active in large multifamily transactions across the Garden State. What significant deals or milestones stand out?
In New Jersey, we have observed the return of the institutional investor. We have completed several deals, though many have been handled more by our South Jersey partners connected to our Philadelphia office. One notable transaction was the large sale of a portfolio for an investor exiting the market to refocus on Eastern Pennsylvania. This client sold all his New Jersey assets, and we facilitated that sale. Our Northern New Jersey sales team handled the listing, while our Philadelphia sales team identified the buyer. This is a prime example of our internal collaboration. New Jersey is a unique market that is both independent and connected to larger regional dynamics. We were able to leverage our Pennsylvania buyers who sought exposure to New Jersey to find the right purchaser for those assets. Because the seller was based in Pennsylvania, our Philadelphia team also arranged the debt placement, with support from our New Jersey team due to our local expertise. That ability to leverage our coast-wide team to cover the New Jersey market thoroughly is where Berkadia adds significant value.
How would you describe the state of New Jersey’s commercial real estate market, particularly in multifamily and mixed-use development?
We are a multifamily-focused company, and that is certainly the sector driving activity in New Jersey. The state is underhoused, and where there is new construction, it is predominantly in multifamily. Our hospitality team has also completed a couple of transactions in New Jersey, but the clear focus is multifamily. In the northern part of the state, particularly areas close to New York City, and similarly in areas near Philadelphia, we are observing a great deal of new, higher-end construction. With interest rates stabilizing, we are witnessing the return of the institutional investor to New Jersey.
However, it is important to note that New Jersey remains a family office market, and it is dominated by local investors who live here and know the market intimately. There has been some crossover from Eastern Pennsylvania and New York, but New Jersey-based entities typically lead major transactions. Cap rates have remained strong even as they have increased elsewhere in the country, making them attractive for sellers. We are seeing a return to normal in sales volume after a post-COVID surge and a subsequent drop-off as rates rose. One interesting data point is that our volumes for the first six months of 2025 were close to or in excess of our total volume for all of 2024, which indicates a significant return of activity.
What trends are you seeing in investor sentiment and capital flow into the state’s real estate market in New Jersey?
New Jersey continues to have a growing population. Despite national immigration constraints, the state is still experiencing an influx of people from New York. This is causing some investors to look toward New Jersey. We are the most densely populated state per capita, and there is a significant need for housing. A substantial shortfall still exists. We are observing a great deal of new construction along the Gold Coast, from Newark northward, and in pockets throughout the rest of the state as counties work to meet their affordable housing goals. For example, in East Brunswick, where I live, close to 2,000 units have been added over the last three years, with another 750 planned. Absorption is occurring, albeit slower than some owners had initially hoped, but it remains strong statewide. The office market in New Jersey is challenging, with availability signs on nearly every building. In contrast, multifamily rents have demonstrably grown over time, making it a prime target for investment. We are watching the transformation of former corporate campuses, such as the old Hoffmann-La Roche site in North Jersey, which are now being redeveloped to include multifamily housing that is absorbing well. It is a dynamic environment where housing is coming online and investors are pursuing it, with family offices leading the way and institutional investors following closely behind.
With increasing interest in mixed-use and transit-oriented developments, how is Berkadia positioning itself to meet these evolving demands in New Jersey?
A significant portion of that demand incorporates a low-income housing component. We have expanded our Low-Income Housing Tax Credit business, where we have the capacity to purchase tax credits. We are currently the largest affordable lender for Freddie Mac. We are consistently ranked either No. 1 or No. 2 on the HUD side, another positive development within the affordable housing sector. This is not as directly related to multipurpose developments, but it is certainly relevant to affordable housing. We are actively working on deals on the tax credit side and examining the multifamily sector. I am working on a New Jersey Aspire tax credit deal, which is better suited for mixed-use projects where the Low-Income Housing Tax Credit does not apply. This deal will include some parking and is near a train station. The plan incorporates parking, a light grocery element, and medical offices above it, alongside somewhere between 180 and 210 residential units. Due to the substantial amount of commercial space, it was not viable for the Low-Income Housing Tax Credit program. It also had limited affordability requirements because the market only supports affordable units, so we did not need to implement restricted rents. The borrower has applied for, and we are utilizing, Aspire credits. We are working with him to sell those credits into the marketplace to generate the necessary equity. Essentially, that is how we are moving into that space, as it involves conventional banking augmented by the tax credit side of our business. Our ability to execute both conventional and affordable housing loans through Fannie Mae, Freddie Mac, and HUD makes us a formidable 800-pound gorilla, capable of providing everything a client needs with one point of contact.
What are your strategic priorities for Berkadia’s New Jersey office, and how do you see the market evolving over the next three to five years?
Our CEO, Justin Wheeler, speaks about this clearly. We do take a long view. We are not a transactional company. We do not have public ownership. We have private ownership. Therefore, quarterly earnings do not drive how we manage our business. We are investing significantly in the business itself. We have invested substantial funds in technology. In fact, in our New York office, several individuals came from our technology footprint. We are working to ensure we can harness the best of artificial intelligence. We have created our own internal artificial intelligence, so the information flow is accurate and provides what we need to build our business. We use that to find clients and investors and to make the correct matches. I believe that is Berkadia’s view: We invest in our people, and we invest in technology. We are not interested solely in one single deal; rather, we are interested in all the deals that come afterward. Even when I sit down with the younger members of our staff, I explain that we must get a deal done correctly so that we secure the next one and keep the client happy, and this is because we take the long view.
