Dave Karson, managing director of Cushman & Wakefield Sonnenblick Goldman, says Mill Management bested several other offers for the two properties. "The sale and finance market for multifamily is still robust and Groton has demand generators that should thrive in this economy," he says. "There was a lot of interest in these complexes, and we ultimately selected Mill Management as the buyer because of its strong track record in closing transactions and the properties' fit with its existing portfolio."

He adds that pricing was agreed to last August--pre-credit crunch--and that "pricing held up for the most part" until closing. Karson notes that Mill Management assumed a $12-million Fannie Mae loan and also took an unspecified supplemental draw from Fannie Mae. The balance of the purchase was funded through equity.

Groton Townhouse Apartments, built in 1957, consists of 141 one-, two-, and three-bedroom units within a 29-townhouse building complex. Phoenix Apartments consists of 96 one-bedroom residences in three buildings. The property was developed in 1973. Karson says that he expects Mill Management to make upgrades to the class B properties in order to bring rents up to market rates.

Steve Schacter, president of Mill Management, says the purchase marks the company's re-entrance into the multifamily market. "What attracted us to the property is that we think the multifamily sector is a good sector to be in right now." The firm, which sold off its multifamily interests back in 2005, is also set to close on a 260-unit apartment development in Hartford within the next 30 days, he says. Mill Management currently oversees several million sf of industrial space and approximately 200,000 sf of office space.