new haven county market overview march 2012 presented by: steven k. inglese, sior brokers of...
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New Haven County Market Overview
March 2012
Presented by:
Steven K. Inglese, SIOR
Brokers of Investment Properties & Development Sites
www.TheNewHavenGroup.com203-773-3060
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Introduction
2011 – The lost year! Is 2012 the year of the big thaw?
The news of the year
2011 and 2012 market transactions
Where do we go from here?
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The News of the Year
High Tech Manufacturing
Yale New Haven Hospital and St. Raphael’s to Merge
Quinnipiac Expands Graduate CampusNew Medical School2,000 new graduate students to North Haven
Yale’s Endowment back over $20 billion
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2011 Transactions
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0
10
20
30
40
50
2011 2010 2009 2008 2007
Office
Industrial
Apartments
Annual Sale Transactions
Per Conn-Comp
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Apartment Sale Transactions
Sunset Ridge, New Haven 312 units – affordable
housing Sold for $45k/unit - $14MM Belfonti Associates
purchased from Winn Residential
Meeting House –Meriden
296 units + 13k sf retail $53k/unit - $16.25 mm 7.6% going in cap rate 1 & 2 Bd and Town houses Solomon Organization, buyer
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Value Added Apartment SalesTrolley Crossing – East Haven 214 units 126 efficiencies and 88 -1
Bedrooms Sold for $45k - $9.6 mm 7% going in cap rate Beachwold Residential buyer
492 Fountain – New Haven 72 units (1 and 2 beds) $59k/unit $4.25MM Pike International buyer
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9 Dixwell Ave, New Haven 21 units + Ground
Floor Retail, mostly studios
$1,900,000 - $86k/unit
Redevelopment Play for Yale Univ.
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Apartments –New Haven County
City of New Haven Apt Vacancy lowest in
Country at 1.9% --National average 5.6%
City Class A rents range from $1.75 to
$2.77/sf
Suburban Class A rents from $1.25 to
$1.90/sf
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360 State St – New 500 unit Complex90% Occupied in 14 months
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Office to Apartment Conversion
Downtown Milford – 1 New Haven Ave Former office building Purchased for
Apartment mixed use redevelopment
Close to Metro North REO asset Bob Smith - developer
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Notable Retail Sales
Fedex Kinkos, Starbucks, Pizza Hut
$7.05 MM ($286/sf) – 8% cap / 9% equity return
26,000 sf- built ‘07 Loan Assumption $5.1m
Washington Trust
170,000 s/f , multi tenants
$13.7 mm ($81/sf) 7.3% going in Cap
Silver Commons, Meriden 500 Derby Ave - Derby
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Office Sales
25,000 s/f office $2.2 mm ($88/sf) or
$62k per apt unit.
$1.5 MM ($63/sf)
432 Washington Ave, North Haven
Easter Seals Purchases
1 New Haven Avenue – Milford
Apartment Redevelopment
Wellpath Buys E. Main St Waterbury
$2.2 MM - $77/sfUser
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Medical Office Sales
2560 Dixwell Ave., Hamden21,000 s/f medical building$6,855,000 ($316/sf)Built in 2007
6 Devine Street, North Haven115,000 s/f OfficeYale New Haven Hospital to purchase from AT&T for Outpatient and Admin.
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2011 Office Lease Deals
Leases 28,000 s/f -- $21/sf 10 yr
Occupies 1st phase of 80,000 sf of 217,000 s/f lease
Community Health Network Leases 23,000 sf - $9/sf range
At 4 Fairfield Blvd, Wallingford
Campus At GreenhillWallingford
4 Fairfield Blvd
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2011 Office Lease Deals
IPP – 24,000 sf538 Preston Ave , Meriden$18.50/sf $ - 40/sf T.I. – 10 yr
VNA – 10,000 sfOne Hamden Center$19.50/sf - $40/sf T.I. – 10 yr
Alliant Insurance Services – 15,000 sf55 Realty Drive, CheshireMoves from Waterbury
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Industrial Sales
65,000 s/f $34/sf - $2.2MM Sold to United Concrete (owner user)
386,000 s/f $9/sf - $3.9 MM Former Printing facility Speculative purchase
297 State St, North Haven
69 North Plains Highway,Wallingford
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Industrial Sales
75,000 s/f $2.5 MM ($33/sf) Aurora Products (owner
user)
205 Edison Rd Orange
1020 Research Parkway Meriden
43,000 s/f $1.25 MM ($30/sf)Lasership (owner user)
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2011-12 Industrial Leases
Allied Building Products - 86,000 s/f780 North Colony RdWallingford $3.50/sf NNN
CF Paper – 80,000 s/f351 Morgan LaneWest Haven $3.75/sf NNN
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2011-12 Manufacturer Leases
LQ Group – 12,000 s/f33 Business Park DriveBranford $6.50/sf NNN
Forum Plastics – 34,000 s/f105 Progress LaneWaterbury $3.65/sf NNN
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Where’s The Market Going? Education and Healtcare Knowledge Based Workers in demand EDC of New Haven Survey shows 7,500
freelance / self employed workers within the city of New Haven
The Living Experience is what Counts Access to transit Entertainment and cultural Housing
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Start Up Companies in New Haven
Higher One Grey Wall Software Continuity Control Prometheus Research SeeClickFix YouRenew Optherion Independent Software PaperG Spot on Networks Retail Optimization Historx GSM Nation
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Start Up Opportunities
The Grove - collaboration and incubator space for start ups
CT Tech at Science Park – high tech incubator space
The Bourse – Downtown collaboration and hoteling space.
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How are these companies impacting the market?Science Park New Haven Mixed Use$150 million Development Rendering View
140,000 s/f office for Higher One
200 Market Rate apartments, with 20% affordable
Before View
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Downtown Crossing – 400,000 sf Bio tech Building Planned
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In Closing
Healthcare and Education continuing to lead the charge
Strengthening Manufacturing sector
Apartment Market remains solid
Modest improvement in transactions for 2012
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New Haven County Market Overview
March 2012
Presented by:Steven K. Inglese, SIOR
Brokers of Investment Properties & Development
Sites
www.TheNewHavenGroup.com
203-773-3060