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TRI-STATE MULTIFAMILY UPDATE · AVALON ON STAMFORD HARBOR RIVERCREST LUXURY APARTMENTS Address Sale...
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Nationally, 2014 was a watershed year for multifamily sales as $112 billion in properties (sales $25M+) traded hands which is 5.7% higher than the previous transaction peak of $107 billion in 2007. The mark was reached with approximately the same number of units selling (989k in 2007 v. 990k in 2014) meaning the 2014 average price per unit of $113,000 also exceeded the 2007 average price of $107,000 by 5.5%. CBRE predicts 2015 sales will eclipse the 2014 peak, with our view being sales volume will reach $120 billion or a 7.1% increase. Regionally, the suburban New York apartment market (defined as approximately 50 miles from New York City, excluding Manhattan and the Boroughs) experienced similarly robust sales with 2014 volume reaching $2.16 billion (Sales $25M+) though not quite eclipsing the 2007 peak of $2.21 billion. At the property level, increasing diversity in resident ages is the theme. Between 30%-35% of renters are baby boomers who are drawn to the same active lifestyle and robust amenities as millennials. Think access to transportation, dining and entertainment in communities offering fitness centers, clubrooms and pet parks. Boomers are in better physical health with a strong desire to “stay young” thus are attracted to buildings appealing to millennials who also seek out class A communities as they appreciate quality finishes and amenities. Benefit to owners, one location and rich amenity packages now appeal to a much broader audience. Expect this trend to continue as the 65+ population will increase by 17% (fastest growing segment) through 2020 compared to the 24-44 year old population that will increase about 5% (next fastest growing segment) during the same timeframe. Q1 2015 TRI-STATE MULTIFAMILY UPDATE Robust Sales Activity and Diverse Resident Base Contribute to Healthy Apartment Market Address Sale Date Sale Price Price Per Unit No. Units Built Buyer Seller Stamford, CT January 2015 $114,700,000 $355,908 323 Units 2002 TGM Associates Avalon Bay Communities 4 4 4 4 4 4 4 4 Address Sale Date Sale Price Price Per Unit No. Units Built Buyer Seller West Fishkill, NY December 2014 $57,000,000 $228,000 250 Units 2006 Watchtower Investments AVR Realty 4 4 4 4 4 4 4 4 AVALON ON STAMFORD HARBOR RIVERCREST LUXURY APARTMENTS Address Sale Date Sale Price Price Per Unit No. Units Built Buyer Seller Fort Lee, NJ December 2014 $120,000,000 $341,280 351 Units 1999 Pantzer Properties Capri Capital Partners 4 4 4 4 4 4 4 4 Address Sale Date Sale Price Price Per Unit No. Units Built Buyer Seller Bloomfield, NJ November 2014 $104,000,000 $288,089 361 Units 2013 Clarion Partners Prism Capital Parnters/ Greenfield Partners 4 4 4 4 4 4 4 4 CREST AT FORT LEE THE PARKWAY LOFTS New Jersey, New York & Connecticut The below Tri-State transactions are a sample of both urban and suburban sales in New Jersey, New York and Connecticut representing core to value-add opportunities. CBRE has more detailed sales comparables information, (including cap rates) on all 2014 (and prior) transactions. Please contact Jeff Dunne or Gene Pride for a complete report. Jeff.Dunne@cbre.com | Gene.Pride@cbre.com 2014 Significant Sale Transactions
Transcript of TRI-STATE MULTIFAMILY UPDATE · AVALON ON STAMFORD HARBOR RIVERCREST LUXURY APARTMENTS Address Sale...
Nationally, 2014 was a watershed year for multifamily sales as $112 billion in properties (sales $25M+) traded hands which is 5.7% higher than the previous transaction peak of $107 billion in 2007. The mark was reached with approximately the same number of units selling (989k in 2007 v. 990k in 2014) meaning the 2014 average price per unit of $113,000 also exceeded the 2007 average price of $107,000 by 5.5%. CBRE predicts 2015 sales will eclipse the 2014 peak, with our view being sales volume will reach $120 billion or a 7.1% increase. Regionally, the suburban New York apartment market (defined as approximately 50 miles from New York City, excluding Manhattan and the Boroughs) experienced similarly robust sales with 2014 volume reaching $2.16 billion (Sales $25M+) though not quite eclipsing the 2007 peak of $2.21 billion.
At the property level, increasing diversity in resident ages is the theme. Between 30%-35% of renters are baby boomers who are drawn to the same active lifestyle and robust amenities as millennials. Think access to transportation, dining and entertainment in communities offering fitness centers, clubrooms and pet parks. Boomers are in better physical health with a strong desire to “stay young” thus are attracted to buildings appealing to millennials who also seek out class A communities as they appreciate quality finishes and amenities. Benefit to owners, one location and rich amenity packages now appeal to a much broader audience. Expect this trend to continue as the 65+ population will increase by 17% (fastest growing segment) through 2020 compared to the 24-44 year old population that will increase about 5% (next fastest growing segment) during the same timeframe.
Q1 2015
TRI-STATE MULTIFAMILY UPDATE
Robust Sales Activity and Diverse Resident Base Contribute to Healthy Apartment Market
AddressSale DateSale Price
Price Per UnitNo. Units
BuiltBuyerSeller
Stamford, CTJanuary 2015$114,700,000$355,908323 Units2002TGM Associates Avalon Bay Communities
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AddressSale DateSale Price
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West Fishkill, NYDecember 2014$57,000,000$228,000250 Units2006Watchtower Investments AVR Realty
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AVALON ON STAMFORD HARBOR RIVERCREST LUXURY APARTMENTS
AddressSale DateSale Price
Price Per UnitNo. Units
BuiltBuyerSeller
Fort Lee, NJDecember 2014$120,000,000$341,280351 Units1999Pantzer Properties Capri Capital Partners
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AddressSale DateSale Price
Price Per UnitNo. Units
BuiltBuyerSeller
Bloomfield, NJNovember 2014$104,000,000$288,089361 Units2013Clarion Partners Prism Capital Parnters/ Greenfield Partners
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CREST AT FORT LEE THE PARKWAY LOFTS
New Jersey, New York & Connecticut
The below Tri-State transactions are a sample of both urban and suburban sales in New Jersey, New York and Connecticut representing core to value-add opportunities. CBRE has more detailed sales comparables information, (including cap rates) on all 2014 (and prior) transactions. Please contact Jeff Dunne or Gene Pride for a complete report.
[email protected] | [email protected]
2014 Significant Sale Transactions
AddressSale DateSale Price
Price Per UnitNo. Units
BuiltBuyerSeller
Stamford, CTSeptember 2014$75,100,000$204,076368 Units1963JRK Property Holdings Fairfield Residential
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AddressSale DateSale Price
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BuiltBuyerSeller
Stamford, CTAugust 2014$69,100,000$382,329146 Units2008CLAL Cornerstone
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AddressSale DateSale Price
Price Per UnitNo. Units
BuiltBuyerSeller
Stamford, CTAugust 2014$120,500,000$350,291344 Units2014Waterton Associates/CLAL Post Road/Greenfield Partners
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AddressSale DateSale Price
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BuiltBuyerSeller
Rutherford, NJJuly 2014$34,250,000$317,130108 Units2006Mesirow Financial Avalon Bay Communities
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AddressSale DateSale Price
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BuiltBuyerSeller
Hoboken, NJJune 2014$125,500,000$522,917240 Units1999JP MorganAFL-CIO
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AddressSale DateSale Price
Price Per UnitNo. Units
BuiltBuyerSeller
Morristown, NJMay 2014$51,250,000$343,960149 Units2002GreystarAMLI Residential Properties, LP
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AddressSale DateSale Price
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BuiltBuyerSeller
Jersey City, NJApril 2014$38,000,000$103,825366 Units1900’s/2015Mill Creek Residential Trust350 Warren LP
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AddressSale DateSale Price
Price Per UnitNo. Units
BuiltBuyerSeller
Edgewater, NJMarch 2014$120,250,000$539,238223 Units2004Cornerstone RE AdvisersDaibes Enterprises
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CORNERSTONE AT BEDFORD
75TRESSER
CURLING CLUB APARTMENTS
350 WARREN
GLENVIEW HOUSE
AVALON AT RUTHERFORD STATION
AMLI ON THE PLAZA
ST. MORITZ
AddressSale DateSale Price
Price Per UnitNo. Units
BuiltBuyerSeller
West Hempstead, NYFebruary 2014$70,250,000$468,333150 Units2012UBS Realty InvestorsMill Creek
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WEST 130 Address
Sale DateSale Price
Price Per UnitNo. Units
BuiltBuyerSeller
Hoboken, NJFebruary 2014$33,550,000$568,64459 Units2013LasalleArgo Real Estate JV Alpine Development
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ARTISAN
2014 Significant Sale Transactions
Gene PrideSenior Vice President
+1 201 712 5604
INSTITUTIONAL PROPERTIES
Visit us at: www.cbre.com/igtristate.com
Jeffrey R. DunneVice Chairman
+1 201 712 5841
CBRECapital Markets | Institutional Properties
Park 80 West, Plaza, II | Saddle Brook, NJ 07663
201 Tresser Boulevard, Suite 201 | Stamford, CT 06901
200 Park Avenue | New York, NY 10166
For further information, please contact:
@ 2015 CBRE Inc. This information has been obtained from sources believed reliable. We have not verified it and make no guarantee, warranty or representation about it. Any projections, opinions, assumptions or estimates used are for example only and do not represent the current or future performance of the property. You and your advisors should conduct a careful, independent investigation of the property to determine to your satisfaction the suitability of the property for your needs.
CBRE’s Institutional Properties Group is a multifamily market making investment brokerage team lead by Jeff Dunne and Gene Pride. We represent clients in New Jersey, New York and Connecticut.
The below map illustrates the location of apartment communities completed in the past 18 months or currently under construction. Each “bubble” represents the location of a property. The larger “bubbles” represent larger projects as described in the legend below. CBRE can provided detailed information on each property identified on this map in addition to proposed apartment communities not yet under construction. Please contact either Jeff Dunne or Gene Pride for copies of the complete construction pipeline.
New York Suburban Apartment Construction Pipeline
