324-UNIT MULTIFAMILY PORTFOLIO SELLS FOR $36.5 MILLION
WESTCHESTER COUNTY, N.Y. — Home Properties LP has sold a 324-unit multifamily portfolio to Morgan Bari Manor LLC, Morgan Hudson View LLC, Morgan Sherwood LLC, Morgan Sparta Green LLC and Morgan Patricia LLC for $36.5 million. The six communities are detailed below:
• Patricia Apartments is located Peekskill, N.Y., and consists of 100 one-bedroom flats and two- and three-bedroom townhome units.
• Bari Manor Apartments is located in Croton-on-Hudson, N.Y., and consists of 82 studio, one-, two- and three-bedroom apartment units.
• Hudson View Estates is located in Peekskill, N.Y., and consists of 71 one-, two- and three-bedroom apartment units.
• Sparta Green Apartments is located in Ossining, N.Y., and consists of 43 one- and two-bedroom flats and two-bedroom townhome units.
• Sherwood Townhouse and Sherwood House are located in Ossining, N.Y., and consist of 28 one-bedroom flats and two-bedroom townhome units.
Steve Witten and Victor Nolletti of the New Haven, Conn., office of Marcus & Millichap Real Estate Investment Services, and Mark Walsh and John Thomas of Smithtown, N.Y.-based Select Investment Realty Advisors were the sole brokers in the transaction.
Witten says despite foreseeable difficulties in 2009, the multifamily sector will pull through.
“Multifamily is certainly the preferred product type for institutional and private investors delivering stable, solid returns, particularly in the supply-constrained New England markets,” says Witten. “Transaction velocity was actually quite strong through end-of-year 2008 for the region, although cap rates and the internal rate of return have increased by 100 to 150 basis points from a year ago.”
Located along the Hudson River, the portfolio is an attractive distance from New York City via Metro North and Route 9. Westchester County has also been named to Intelligent Community Forum’s 2008 Top 7 list.
“This was more of a portfolio repositioning on the part of the seller and a strong opportunity for the purchaser to acquire a large portfolio in a very desirable rental market just north of New York City,” says Walsh.
Financing was provided by Fannie Mae through M & T Realty Capital Corp.