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Deals & Dealmakers

SELLING POINTS: Arborcrowd shops multifamily opportunity; SL Green closes $91M leasehold deal

Investors sought for CT opportunity
ArborCrowd is offering investors an opportunity to acquire equity interests in Cove West Hartford, a 200-unit apartment community in West Hartford, Conn.
The six-building complex is situated 2.5 miles from downtown Hartford. A repositioning effort will upgrade every apartment and reimagine its 12,000 s/fclubhouse to provide sought-after amenities.
The property was recently acquired in an off-market transaction by affiliates of ArborCrowd, CS Acquisition Group, a real estate owner and operator with a large portfolio in the Hartford area, and AMAC — a real estate private equity firm that is part of the Arbor family of companies.
ArborCrowd is seeking to raise $3.55 million from investors for this opportunity. The total capitalization of the transaction is $26.3 million, and the Sponsor and AMAC will continue to own more than 50 percent of the total equity in the transaction.
The investment opportunity has a projected 14 to 17 percent Internal Rate of Return (IRR) and a targeted hold period of three to five years.
“We’re highly selective about the deals we present to our investors. Each sponsor and project is thoroughly vetted to ensure the deal and projected business plan match up with market fundamentals and demand,” said Adam Kaufman, Co-Founder and Managing Director of ArborCrowd.
“Like all of our deals, this investment was sourced through our relationship with the Arbor family of companies, which provides us access to a proprietary network of successful sponsors.”
Given the limited supply of quality multifamily workforce housing options in the market, the sponsor anticipates that the Property will appeal to the Hartford area’s working-class residents.
The Cove West Hartford equity offering marks the seventh multifamily deal that ArborCrowd has presented to its crowd investors since its founding in 2016.

$91M leasehold sale closes

SL Green has closed on the $91 million sale of a 30-year leasehold condominium interest covering 308,115 s/f at 220 East 42nd Street, also known as the News Building, to Visiting Nurse Service of New York (VNSNY).
“We’re delighted to welcome VNSNY to the News Building. This was a complicated transaction requiring the consolidation of numerous spaces, the creation of a private tenant lobby and significant upgrade to certain building infrastructure to support the tenant’s high density occupancy,” said Steven Durels, Executive Vice President at for SL Green.
Previously announced in 2016, the move by the VNSNY falls as the organization celebrates its 125th anniversary.
Guy Sansone, CEO of VNSNY, said, “This new centralized space will help us respond to the demands of a rapidly changing healthcare system, positioning us to continue our mission for another 125 years. ”
The 30-year deal covers part of the second, entire third, fifth and sixth, part of the seventh, and part of the ground and concourse level. The not-for-profit is relocating from 1250 Broadway, where they have occupied 320,000 s/f since 1994.
A Cushman & Wakefield office leasing team of Tara Stacom and David E. Green, along with Louis Wolfowitz and Mark Todrys from the firm’s Corporate Finance & Investment Banking group completed the transaction on behalf of VNSNY.

UC Funds sells Stamford property

CBRE announced the $42 million sale of Park Square West, a nine-story mixed-use property in Stamford, Conn.
Jeffrey Dunne, Gene Pride and Eric Apfel represented the seller, an affiliate of UC Funds, in the sale and also procured the buyer.
Built in 2001, the 143-unit property, which also includes two ground-floor commercial units, is located in Stamford’s restaurant, retail and entertainment corridor and features views of the Long Island Sound from the newly renovated rooftop deck.
Park Square West has been recently upgraded with a new lobby and offers a secure parking garage and a resident game room. The updated unit interiors boast gourmet kitchens with granite countertops, stainless steel appliances and new cabinetry, hardware and lighting.
“Park Square West is an ideally located residential property, as it’s walkable to dozens of restaurants and bars, three movie theaters, the Stamford Mall, the Palace Theatre, numerous downtown employers and the Amtrak/Metro North Stamford train station,” said Dunne.
“The renovations made at the property over the past two years have led to strong leasing activity and will allow the new owner the ability to capitalize on the long-term appeal of Stamford’s 24/7 lifestyle, which continues to attract new residents and businesses to the community.”
The Park Square West property traded at a 4.21 percent cap rate on T12 NOI, but offers the opportunity to grow revenue through unit renovations, additional income from parking and common area upgrades to produce a 6.5 percent cap rate by year three.


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