Redwood Realty Advisors is pleased to announce that it has completed the sale of a 10-unit multifamily property in Ossining, N.Y. The property sold for $2.3 million, which generated a cap rate of 5.7%. The asset has been completely renovated, including new kitchens, bathrooms, on-site laundry and storage. The new owner plans on taking advantage of an influx of renters moving north out of New York City. The Village of Ossining is in the midst of a total overhaul that is attracting attention from new residents and private investors.
Redwood Realty Directors Michael Scrima and Thomas Gorman led the sales team, which represented both the buyer and seller for this transaction. The buyer was highly motivated to move quickly before interest rates move higher, and the transaction team was able to work in tandem with Redwood Capital Advisors to secure financing. Redwood Capital Advisors’ Vice President Edward McCarthy arranged financing on behalf of the borrower. The $1,725,000 permanent loan features 75% LTV and 25 years of amortization at a rate of 2.99%.
“We have found that educated buyers and sellers are aware of the Fed’s plan to begin tapering its bond-buying program in 2022 and are trying to take advantage of low interest rates while they can,” said Redwood Director Michael Scrima. “While we are confident that well-kept free market properties in the lower Hudson Valley will not only retain their value long term but grow, we cannot ignore the adjustment coming due to the potential interest rate environment later this year that could have a negative impact on pricing.”