2018
CONTENTS:
mid-year review
Recent Sales
Connecticut &
About UMF
Westchester County
Market Overview
Who We are Since its inception in 1998, UMF has successfully completed 1,200 transactions of investment properties resulting in $1.8 Billion in total investment sales. With direct experience in the acquisition, management, development and finance of investment properties, the UMF team is supported by the latest marketing technology, sophisticated market research, and comprehensive training. UMF Analysts and Associates apply their varied experiences in real estate, with their extensive knowledge of local and national investment trends, to a pricing and disposition strategy that yields the highest maximum value for clients.
our deal management We CREATE a due diligence file with all relevant property and financial data. This helps us speed up the due diligence process by providing investors information up front making the timeline of the sale much easier for all parties involved.​We do all of this while working with only the most qualified investors and doing it in a manner that ensures no tenants and/or staff find out about the sale until the deal is closed.
Rich Cawley
Matt Cawley
Kurt Cawley
President
Senior Director
Senior Director
617.529.1141
917.946.5425
617.875.1073
rcawley@umf.com
mcawley@umf.com
kcawley@umf.com
Multifamily, Commercial:
Multifamily: Westchester County
Multifamily, Commercial:
Connecticut
NY, Fairfield County CT
Connecticut
how we market To get you the highest price we do things the right way. We spend the time and money to present your property in the best possible way.
we brand
we Maximize
we feature
each property we market with it’s
exposure by utilizing regional trade
your property on our website and
own unique landing page and custom
journal advertising and provide
create an individualized email blast
domain. Our deals are marketed with
additional deal exposure to millions
which goes out to our proprietary list
drone/professional imagery and full
of investors nationwide through the
of 10,000+ investors.
marketing brochures.
most popular commercial real estate sites including Loopnet & CoStar.
E-blast
Interested in selling your property? Want to get the highest possible price in the shortest period of time? To find out what your property could sell for in today’s market and how we would market your property please contact Rich Cawley at 617-529-1141 or email rcawley@umf.com.
Landing Page
2018 Mid-Year Review
CT & WESTCHESTER COUntY MULTIFAMILY Sales volume
Westchester $280,976,439
# of Transactions
Avg. Cap Rate
Avg. Price PSF
Avg. Price Per Unit
Hartford
18
8.1%
$144
$142,277
New Haven
14
8.7%
$127
$112,249
New London
8
9.4%
$108
$87,987
Fairfield County
8
7.2%
$140
$139,457
Westchester
16
6.7%
$218
$240,539
Total/Avg.
64
7.7%
$154
$160,511
Hartford $145,109,518 New Haven $198,944,714
Fairfield $120,691,000
New London $47,109,286
Hartford has among the lowest rents of any major New England metro and time will tell how the State’s Capital will respond to the $550M taxpayer bailout received earlier this year. While new development plans for parts of Downtown Hartford hope to spark revitalization, the city must attract new employers to drive demand for quality housing options. For the New Haven multi-family market, 2017 and the first half 2018 were very strong, with record numbers in both volume and pricing. A large portion of the attractive housing stock is concentrated around Yale University, and rightfully so as the university remains a key element in most new developments in the city. The New London multi-family market continues to reap the benefits of General Dynamic Electric Boat’s new government contract, as new high-earning renters are coming into the market. While traditionally a homeowners’ market, Fairfield County is transforming with a
massive amount of apartment rental building deliveries aiding inventory growth of more than 60% since 2010 in Stamford alone. A growing millennial population in the county has increased demand for quality new housing being constructed. Westchester County, which remains one of the most expensive counties to live in the country, is seeing new development projects in areas that historically haven’t seen much development. Downtown New Rochelle is undergoing a revitalized master development with RXR Realty named “Master Developer” to transform the historic downtown area. In addition, the Yonkers waterfront is seeing the largest building boom in it’s history with currently 1,000 new rentals in various stages of development.
Market Indicators
Units Under Construction
$2,500 $2,000 $1,500
5.5% 4.3%
4.5%
6.0% 5.3%
5.0% 3.5%
$1,000 $2,022
New London Average Rent/ SF
Hartford New Haven
$2,047
$1,105
$1,307
$0
$1,235
$500
Fairfield Westchester County County Vacancy Rate
Copyright 2018 United Multi Family│Data Provided by CoStar
Westchester County 4,006
Hartford 1,677
4.0% 3.0% 2.0%
New Haven 697
1.0% 0.0% Fairfield County 2,324
2018 Mid-Year Review
CT & WESTCHESTER COUntY office Sales volume # of Transactions
Avg. Cap Rate
Avg. Price PSF
Hartford
7
8.6%
$55
New Haven
9
10.2%
$84
New London
1
n/a
$18
Fairfield County
16
7.4%
$162
Westchester
13
8.7%
$110
Total/Avg.
46
9.8%
$113
Hartford $19,020,000 New Haven $19,982,650 New London $493,284 Westchester $142,425,000 Fairfield $229,576,250
While vacancy rates in Hartford remain high there is reason for optimism in this sector. The city’s economy has shifted from one focused on the financial services industry to now relying on healthcare and other business-related services. As companies target Hartford for new space look for these two industries to lead the bulk of the office space lease-up. New Haven’s office market is primarily based on the education and health services industry, as close to one third of all the areas employment comes from these sectors. Like other parts of the state, New Haven too has taken blows from major corporations leaving the area as Alexion Pharmaceuticals decided to move its headquarters to Boston. The Fairfield County office market, which has historically focused on the financial services, is in diversification mode as the area prepares to lease-up the space occupied prior by financial sector tenants that have since moved. The area, specifically Stamford
Central Business District, has struggled with these departures with vacancies shooting up as high as 15%. The mid-year investment sales market was highlighted by Rubenstein Partners acquisition of Shippan Landing, a 770,000 square foot facility in Stamford’s waterfront, for approximately $147MM. The most active sections of the Westchester County market run along the I-287 Corridor with the larger space requiring tenants being located to the east, and the smaller more suburban style tenants being concentrated in the west. Major sales in the first half of 2018 include Ginsburg Development’s acquisition of the Westchester Financial Center for $83MM. The firm has plans to redevelop the facilities into a mixed-use complex.
Market Indicators
SF Under Construction
$40.00
15.0% 12.8%
$30.00 $20.00
7.7%
6.5% $26.09
New London Average Rent/ SF
Hartford New Haven
$32.32
$19.62
$20.59
$0.00
10.0% 8.3% $18.52
$10.00
11.9%
Fairfield County 92,443
Fairfield Westchester County County Vacancy Rate
Copyright 2018 United Multi Family│Data Provided by CoStar
5.0% 0.0% New Haven 41,400
Hartford 271,000
2018 Mid-Year Review
CT & WESTCHESTER COUntY retail Sales volume # of Transactions
Avg. Cap Rate
Avg. Price PSF
Hartford
14
7.6%
$142
New Haven
12
6.8%
$178
New London
6
7.3%
$37
Fairfield County
15
7.2%
$292
Westchester
21
6.4%
$271
Total/Avg.
68
6.9%
$203
Hartford
$48,992,677
Westchester $118,382,000
New Haven $76,369,818
Fairfield $72,910,600 New London $2,417,916 In the Hartford metro retail market a lack of new supply coupled with strong leasing throughout 2015 and 2016 have kept the vacancy rate low and it currently sits just under 100 basis points below the 10 year average for the metro area. One particularly active tenant is REI who in recent years has added over 20 locations in the metro area. Many health and fitness oriented retailers have fared well here too. New Haven is experiencing its lowest vacancy rate in decades, but demographics here are limiting overall growth. Demographic issues in this market stem from virtually zero new residents over the past 10 years and only 15% of the population being in the top spending category which is 35 to 54 year olds. Sales volume has been particularly slow in the New London metro area in recent years and that trend has continued through mid-year 2018, although vacancies remain tight in this metro market. Fairfield County’s new retail development is mostly
located in Norwalk and Bridgeport, where Steelpointe Harbor is transforming the city’s waterfront. Stamford has ranked near the bottom of the top 54 metros in development, with about 2 million SF constructed here since 2010, but has an extremely stable vacancy rate, which currently sits at 3.2%. Major sales in the first half of 2018 were highlighted by Asana Partners purchase of 13651391 Post Road East in Westport, CT for $28MM. The majority of existing and under construction retail inventory in Westchester County is situated in the Southeast and Southwest submarkets. These submarkets are split down the middle by the Bronx River Parkway and share a border with the Bronx to the south and White Plains to the north. One notable trade from the first half of 2018 in this market was Regency Centers’ purchase of the 116,422 SF Rivertownes Square for $68.9M – just shy of $600/SF.
Market Indicators
SF Under Construction 6.0%
$40.00 $30.00
4.4%
4.0%
$28.84
New London Average Rent/ SF
Hartford New Haven
3.2% $29.10
$13.58
$16.31
$16.51
$0.00
3.4%
3.8%
Fairfield Westchester County County Vacancy Rate
Copyright 2018 United Multi Family│Data Provided by CoStar
Hartford 401,000 New Haven 70,200
5.0%
4.9%
$20.00 $10.00
Westchester County 338,930
3.0% 2.0%
New London 3,500
1.0% 0.0% Fairfield County 1,660,618
z
2018 Mid-Year Review
sold and for sale by UMF
SOLD Bridgeport, ct 462 Units $30,540,000
FOr sale Rye, NY 103 Unit Ground Lease $19,000,000
Interested in learning more about these transactions? Contact Matt Cawley at 917-946-5425 or mcawley@umf.com.​ z
Interested in selling your property? To find out what your property could sell for in today’s market and how we would property please Rich Cawley at Contact Mattmarket Cawleyyour at 917-946-5425 orcontact mcawley@umf.com. 617-529-1141 or email rcawley@umf.com.
Rich Cawley
Matt Cawley
Kurt Cawley
President
Senior Director
Senior Director
617.529.1141
917.946.5425
617.875.1073
rcawley@umf.com
mcawley@umf.com
kcawley@umf.com
Multifamily, Commercial:
Multifamily: Westchester County
Multifamily, Commercial:
Connecticut
NY, Fairfield County CT
Connecticut
2018 mid-year review Connecticut & Westchester County