Melville-based Fairfield Properties has purchased a seven-property rental portfolio for $472.5 million.
CBRE announced the sale of the multifamily properties located in Nassau and Suffolk Counties.
The CBRE team of Jeffrey Dunne, Gene Pride and Eric Apfel, along with Alexander Virtue of CBRE Capital Advisors, represented the seller, Rochester-based Home Properties.
The same team also procured the buyer, who is the largest owner of multifamily properties on Long Island.
The CBRE New York City and Mid-Atlantic Debt & Structure Finance teams also placed the debt.
The portfolio consists of 1,496 apartments located throughout Nassau and Suffolk counties. Included in the acquisition are the 242-unit Westwood Village in Westbury; the 80-unit Heritage Square in East Meadow; the 82-unit Cambridge Village and 40-unit Yorkshire Village in Levittown; the 232-unit Mid-Island Apartments in Bay Shore; the 452-unit Southern Meadows in Bayport; and the 368-unit Lake Grove Apartments in Lake Grove. Fairfield now owns approximately 12,000 rental apartments on Long Island. The company plans to invest in upgrades and finishes throughout this newest addition to its growing portfolio.
“We are pleased to have been part of the sale of this exciting portfolio,” said CBRE’s Dunne, who noted that the portfolio was assembled on an investment thesis of buying high-quality, Class B assets in markets with high barriers to new construction, access to diverse employers and strong school systems. Over the past 10 years, ownership made significant investments in the properties, creating an excellent overall condition for assets of this age.
The work produced higher-than-average occupancy, continued rent growth and resident retention; all of the properties have reputations within their respective markets for providing quality housing at a significant discount to the cost of renting at a newer building.
“There was incredible interest in the properties, as this class of ‘workforce housing’ is in high demand because of a shortage of quality Class B apartments and the slow pace of new construction on Long Island,” said Dunne.
“These factors created an opportunity for astute investors, like Fairfield Properties, to capitalize on strong market fundamentals. Fairfield Properties is already the largest owner of apartments on Long Island and this acquisition significantly adds to their portfolio. Consistent with Fairfield’s reputation of using ‘best practices’ to operate and maintain their properties, they plan to invest heavily in upgrading common areas and unit finishes throughout the portfolio.”