BRIDGEPORT, CT - Investment sales broker Northeast Private Client Group has announced the sale of 2 Lyon Street, a 12-unit apartment building in the Wooster Square submarket of New Haven, CT. Bradley Balletto, the firm’s regional manager for Southern Connecticut, represented both the seller and the buyer in the $1,200,000 transaction, which closed on October 25.
“High occupancy and growing rents in New Haven are driving strong demand for multifamily properties,” notes Balletto. “In today’s still uncertain financial market conditions, income-producing real estate is still the best vehicle for generating and preserving wealth.”
The seller, Petack Bepaz LLC of Great Neck, NY, purchased the property in 2007 and performed renovations and re-tenanted the property to capture strong apartment demand from students and young professionals in the Wooster Square market. The buyer, Bright Stone Realty, based in New Haven CT, purchased the Lyon Street property for a price that equates to $102/SF, which represents a capitalization rate of 7.4 per cent on the current year’s net operating income.
“The new investment sales cycle is picking up speed this year,” explains Edward Jordan, JD, CCIM, the firm’s managing director. “We have about two dozen deals under contract in southern New England presently. Growing rents give investors the confidence to move forward on acquisitions, and the increased competition for these assets benefits our sellers as well.”