New Haven County
Market Overview
March 2012
Presented by:
Steven K. Inglese, SIOR
Brokers of Investment Properties & Development Sites
www.TheNewHavenGroup.com
203-773-3060
Introduction
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2011 – The lost year! Is 2012 the year
of the big thaw?
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The news of the year
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2011 and 2012 market transactions
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Where do we go from here?
The News of the Year
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High Tech Manufacturing
Yale New Haven Hospital and
St. Raphael’s to Merge
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Quinnipiac Expands Graduate Campus
New Medical School
2,000 new graduate students to North Haven
Yale’s Endowment back over $20 billion
2011 Transactions
Annual Sale Transactions
50
40
30
Office
Industrial
Apartments
20
10
0
2011
2010
2009
2008
2007
Per Conn-Comp
Apartment Sale Transactions
Sunset Ridge, New
Haven
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Meeting House –Meriden
312 units – affordable housing
Sold for $45k/unit - $14MM
Belfonti Associates purchased
from Winn Residential
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296 units + 13k sf retail
$53k/unit - $16.25 mm
7.6% going in cap rate
1 & 2 Bd and Town houses
Solomon Organization, buyer
Value Added Apartment Sales
Trolley Crossing – East Haven
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214 units
126 efficiencies and 88 -1
Bedrooms
Sold for $45k - $9.6 mm
7% going in cap rate
Beachwold Residential buyer
492 Fountain – New Haven
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72 units (1 and 2 beds)
$59k/unit $4.25MM
Pike International buyer
9 Dixwell Ave, New Haven
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21 units + Ground Floor
Retail, mostly studios
$1,900,000 - $86k/unit
Redevelopment Play for
Yale Univ.
Apartments –New Haven County
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City of New Haven Apt Vacancy lowest in Country
at 1.9% --National average 5.6%
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City Class A rents range from $1.75 to $2.77/sf
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Suburban Class A rents from $1.25 to $1.90/sf
360 State St – New 500 unit Complex
90% Occupied in 14 months
Office to Apartment Conversion
Downtown Milford – 1 New Haven Ave
 Former office building
 Purchased for Apartment
mixed use redevelopment
 Close to Metro North
 REO asset
 Bob Smith - developer
Notable Retail Sales
Silver Commons, Meriden
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Fedex Kinkos, Starbucks,
Pizza Hut
$7.05 MM ($286/sf) – 8%
cap / 9% equity return
26,000 sf- built ‘07
Loan Assumption $5.1m
Washington Trust
500 Derby Ave Derby
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170,000 s/f , multi
tenants
$13.7 mm ($81/sf)
7.3% going in Cap
Office Sales
Wellpath Buys E. Main St Waterbury
$2.2 MM - $77/sf
User
1 New Haven Avenue – Milford
Apartment Redevelopment
432 Washington Ave, North Haven
Easter Seals Purchases
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25,000 s/f office
$2.2 mm ($88/sf) or
$62k per apt unit.
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$1.5 MM ($63/sf)
Medical Office Sales
6 Devine Street, North Haven
115,000 s/f Office
Yale New Haven Hospital to purchase from AT&T
for Outpatient and Admin.
2560 Dixwell Ave., Hamden
21,000 s/f medical building
$6,855,000 ($316/sf)
Built in 2007
2011 Office Lease Deals
4 Fairfield Blvd
Community Health Network
Leases 23,000 sf - $9/sf range
At 4 Fairfield Blvd, Wallingford
Campus At Greenhill
Wallingford
Occupies 1st phase of 80,000 sf of
217,000 s/f lease
Leases 28,000 s/f -- $21/sf
10 yr
2011 Office Lease Deals
IPP – 24,000 sf
538 Preston Ave , Meriden
$18.50/sf $ - 40/sf T.I. – 10 yr
Alliant Insurance Services – 15,000 sf
55 Realty Drive, Cheshire
Moves from Waterbury
VNA – 10,000 sf
One Hamden Center
$19.50/sf - $40/sf T.I. – 10 yr
Industrial Sales
69 North Plains Highway,
Wallingford
297 State St, North Haven
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65,000 s/f
$34/sf - $2.2MM
Sold to United
Concrete (owner user)
386,000 s/f
$9/sf - $3.9 MM
Former Printing facility
Speculative purchase
Industrial Sales
205 Edison Rd
Orange
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75,000 s/f
$2.5 MM ($33/sf)
Aurora Products
(owner user)
1020 Research Parkway
Meriden
43,000 s/f
$1.25 MM ($30/sf)
Lasership (owner
user)
2011-12 Industrial Leases
Allied Building Products - 86,000 s/f
780 North Colony Rd
Wallingford
$3.50/sf NNN
CF Paper – 80,000 s/f
351 Morgan Lane
West Haven
$3.75/sf NNN
2011-12 Manufacturer Leases
LQ Group – 12,000 s/f
33 Business Park Drive
Branford $6.50/sf NNN
Forum Plastics – 34,000 s/f
105 Progress Lane
Waterbury
$3.65/sf NNN
Where’s The Market Going?
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Education and Healtcare
Knowledge Based Workers in demand
EDC of New Haven Survey shows 7,500
freelance / self employed workers
within the city of New Haven
The Living Experience is what Counts
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Access to transit
Entertainment and cultural
Housing
Start Up Companies in New Haven
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Higher One
Grey Wall Software
Continuity Control
Prometheus Research
SeeClickFix
YouRenew
Optherion
Independent Software
PaperG
Spot on Networks
Retail Optimization
Historx
GSM Nation
Start Up Opportunities
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The Grove - collaboration and
incubator space for start ups
CT Tech at Science Park – high tech
incubator space
The Bourse – Downtown collaboration
and hoteling space.
How are these companies
impacting the market?
Science Park New Haven Mixed Use
$150 million Development
Rendering View
Before View
140,000 s/f office for Higher One
200 Market Rate apartments, with 20% affordable
Downtown Crossing – 400,000 sf
Bio tech Building Planned
In Closing
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Healthcare and Education continuing to
lead the charge
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Strengthening Manufacturing sector
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Apartment Market remains solid
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Modest improvement in transactions for
2012
New Haven County
Market Overview
March 2012
Presented by:
Steven K. Inglese, SIOR
Brokers of Investment Properties
& Development Sites
www.TheNewHavenGroup.com
203-773-3060