Boston firm flips Stamford apartment building for $42M
More than two years after it was auctioned off with multiple other buildings in downtown Stamford, the Park Square West building has been sold anew for $42 million, according to CBRE which brokered the transaction on behalf of both the seller and an unnamed buyer.
The nine-story Park Square West has 143 apartments and ground-level commercial space at 101 Summer St. in Stamford. The building had been owned since 2016 by an entity controlled by Boston-based UC Funds, which purchased it along with the Courtyard by Marriott Stamford Downtown hotel in an auction of properties that had been owned by Seaboard Properties, whose principal John DiMenna Jr. was convicted last year of a $70 million fraud.
Hearst Connecticut Media reported earlier this year UC Funds having listed the building for sale, after the firm originated a $28 million mortgage on the building in 2017.
It marks the biggest residential building sale in Stamford this year, surpassing the $25.5 million sale in March of the Pine Hill Apartments complex at 112-120 Strawberry Hill Ave., while falling short of the roughly $67 million fetched last year by both 66 Summer St. and The Wescott at 1450 Washington Blvd.
In its own review published this month of the U.S. multifamily property market, CBRE tracked an 8 percent increase sale transactions through June this year compared to the first half of 2017, while describing “extraordinarily dynamic” overall activity.
Researchers with Marcus & Millichap concurred, noting continued demand by investors in the Stamford-Norwalk corridor even as multiple new buildings are under construction that to date this year have brought about 1,000 additional units into the market. The apartment vacancy rate in Stamford and Norwalk dropped to 4.4 percent in the second quarter, a reduction of 0.4 percentage points from a year ago as calculated by Marcus & Millichap.
Under UC Funds, Park Square West has seen strong leasing activity after renovations the past few years, according to Jeff Dunne, a CBRE vice chairman in the firm’s Stamford office. The building’s monthly lease rates listed on Apartments.com range from $1,850 for a studio measuring 500 square feet, to a one-bedroom for $2,250; with larger units not currently listed as available.
Includes prior reporting by Paul Schott.
Alex.Soule@scni.com; 203-842-2545; @casoulman