MERIDEN, CT-The recently completed Newbury Village Apartment Homes luxury rental apartment development here has changed hands in a deal valued at $30.3 million, reports Marcus & Millichap Real Estate Investment Services, which brokered the deal. Newbury Village Development LLC, an affiliate of Tarragon Corp. of New York City, sold the 180-unit development to Rabin Alexander LLC, a New York City-based private investment group.
The deal for the property at 211 Pomeroy Ave. came out to approximately $168,056 per unit or about $171 per sf, according to Marcus & Millichap officials. Steve Witten and Victor Nolletti of the firm's New Haven office were the sole brokers in the transaction.
The development, which is comprised of two four-story mid-rise and two two-story "big house" style buildings on 10.4 acres, was completed in 2006 and was 96% leased at the time of sale. The property features 16 studio apartments, 64 one-bedroom units and 100 two-bedroom units. Apartment sized range from 658 sf to 1,319 sf. Newbury Village also includes a 5,200-sf clubhouse as well as a host of other amenities. William S. Friedman, chairman and CEO of Tarragon, says that the asset, "did not fit into our long-term plans."
Upon completion the luxury rental property leased up rapidly. Tarragon began marketing the property five months ago and had a contract for sale for the past 70 days with Rabin Alexander. Friedman says that the property generated about a half dozen credible offers. The top three bidders were contacted and the winning bidder was selected based on price and ability to close the transaction quickly.
Marcus & Millichap's Witten says that the deal was a win-win since the property was sold at a fair price and the buyer can take advantage of the growing Greater New Haven/Southern Hartford markets. He says that he expects rental properties in the region to secure anywhere from 6% to 8% rent growth in 2007.
It won't be the last sale Tarragon makes this year, if things go according to plan. Friedman says that his firm plans to put on the market in the near future one of its Upper Grand condominium developments in Hoboken, NJ as well as a new residential development it owns in Manchester.
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