TODAY’S DEALS: Suburban Connecticut Apartment Asset Trades for $58.5M
IPA brokers a sale in Hamden, Conn.; a 130-unit asset in the Far Rockaway neighborhood of Queens trades hands; and Hybrid Capital arranges $6 million in financing for two Upper East Side residential buildings.
Hamden, Conn. — A 498-unit apartment community in Hamden, Conn., has traded hands for $58.5 million. Hamden Partners LLC, a New Jersey-based limited liability company, picked up the asset from Delaware-based Fairfield Apple Hill LP in a transaction brokered by Institutional Property Advisors. IPA executive directors Steve Witten and Victor Nolletti advised the seller.
“Exceptionally well maintained and recently renovated, Broadmoor Apartment Homes is well-positioned for continued growth in one of the Northeast’s strongest rental markets,” says Witten.
“This asset is a nominal risk investment that is well positioned to provide long-term financial stability,” adds Nolletti.
The property is located at 676 Mix Ave., minutes from downtown New Haven and near Route 10, one of Connecticut’s main retail corridors. Built in 1969 and 1970, and renovated from 2006 to the present, Broadmoor Apartment Homes consists of six detached six-story mid-rise apartment buildings with full basements, updated mechanicals and contemporary amenities in a low-density setting. The unit mix features 66 studios, 288 one-bedroom apartments and 144 two-bedroom units. Apartments average 842 square feet.
Community amenities include a fully equipped clubhouse with a resident lounge and business center, an outdoor swimming pool with sundeck, a fitness center, a tennis court, on-site laundry centers, landscaped playground, picnic and barbecue areas, and city and mountain views.
Rockaway apartments sell for $8.5M
Far Rockaway, N.Y. — Besen & Associates has sold Dix McBride Apartments, a garden/low-rise multifamily complex containing 130 apartments in the Far Rockaway neighborhood of the NYC borough of Queens. The complex is comprised of five four-story buildings with 82,321 square feet of net rentable area and 155 parking spaces. It was built in 1998 and resides on 1.87 acres, with 84 percent occupancy at initial time of the sale.
The sale was completed at a price of $8.5 million as a co-broke. C-III Realty Services and Savills served as exclusive representation for seller J.P. Morgan Chase, and Lev Mavashev of Besen & Associates represented the purchaser, a local private investor.
JP Morgan bought the note from CIBC, who were the original lenders to a private developer who built these buildings in 1998. They subsequently took the property back and put it back on the market. The property had undergone over $2 million in renovations after hurricane sandy, and benefits from the 421a tax exemption program, with approximately 10 years remaining. It is adjacent to the Beach Channel and Dix Avenue bus stop and four blocks from the Far Rockaway MTA train station.
“Competition was fierce as distressed asset sales are rare in this market,” says Lev Mavashev of Besen & Associates. “This buyer moved at lightning speed to secure the deal and close the transaction in three weeks. Given the property was operating in the red for the past two years, which was further exacerbated by Hurricane Sandy, a highly competent operator was paramount to making the deal.”
Hybrid Capital arranges $6M financing for Upper East Side residential buildings
New York — Hybrid Capital, a New York-based full-service commercial mortgage and advisory firm, has arranged $6 million in permanent financing for two attached six-story residential buildings on the Upper East Side of Manhattan. The announcement was made by Bobby Bakhchi, CEO of Hybrid Capital.
Constructed in 1910 and renovated in 1984, the 100 percent occupied elevator buildings contain approximately 25,000 square feet with 48 residential units and four ground floor retail spaces. According to Bakhchi, “As vacancies continue to hover around 1% in Manhattan, multifamily continues to be the asset of choice in real estate lending, particularly for well-located, quality properties such as this one.”
The 5-year loan was arranged on behalf of a private owner. Over the past three years, Hybrid Capital has arranged financing for properties valued in excess of $1.5 billion.
