Investment sales broker Northeast Private Client Group has completed the sale of 2 Lyon St., a 12-unit apartment building. Bradley Balletto, the firm's regional manager for Southern Connecticut, represented the seller and the buyer in the $1.2 million transaction, which closed on October 25.
"High occupancy and growing rents in New Haven are driving strong demand for multifamily properties," said Balletto. "In today's still uncertain financial market conditions, income-producing real estate is still the best vehicle for generating and preserving wealth."
The seller, Petack Bepaz LLC of Great Neck, N.Y., purchased the property in 2007 and performed renovations and re-tenanted the property to capture apartment demand from students and young professionals in the Wooster Sq. market. The buyer, Bright Stone Realty, based in New Haven, purchased the Lyon St. property for a price that equates to $102/s/f, which represents a capitalization rate of 7.4% on the current year's net operating income.
"The new investment sales cycle is picking up speed this year," said Edward Jordan, JD, CCIM, the firm's managing director. "We have about two dozen deals under contract in southern New England presently. Growing rents give investors the confidence to move forward on acquisitions, and the increased competition for these assets benefits our sellers as well."