New Canaan apartments sell for $8.38 million
A portfolio of 34 apartments in downtown New Canaan has been sold for $8.38 million. New Canaan Merritt Apartments, based in New Canaan, sold the four buildings to M2 Partners, also located in the upscale community.
The complex totals 39,531 square feet and is comprised of a seven-unit, 7,562-square-foot building at 17-21 Maple St.; a 9,204-square-foot, eight-unit building at 162 Park St.; a 16,385-square-foot, 14-unit building at 168 Park St.; and a 6,380-square-foot, five-unit building at 184 Park St.
The location was a key factor in the transaction, said Al Mirin, senior director at the Stamford office of Cushman & Wakefield, which represented the seller.
"The location is so perfect. You're right across from the train station," Mirin said, adding that there were a number of buyers interested in the complex. "The demand we saw reflects the overall interest in apartments."
Many real estate investors are investing in multi-family apartments rather than in office buildings in the region because of the lack of demand and instability in the market.
"Rental apartments give you the flexibility to reset your rental rates on a yearly basis, but with commercial buildings you're stuck for five years or more," he said.
The New Canaan complex, owned by a single family for multiple generations, is two miles from the Merritt Parkway (Route 15) and a short walk to downtown shopping and restaurants, Mirin said, noting its proximity to Mead Park.
Besides Mirin, the Cushman & Wakefield sales team included Kate Schwartz, associate, members of the firm's Private Capital Group, which specializes in middle market building sales ranging from $2 million to $15 million.
M2 Partners was committed to the project and, as a local real estate investor group, best understood the property's potential, Schwartz said.
Arnold M. Karp and Karp Associates provided advisory services to M2 Partners on the purchase of the property.
"Merritt Apartments is a perfect fit for M2 Partners, considering its ideal location in the center of town," Karp said. "The acquisition fits well into M2 Partners' strategic goals of redevelopment projects coupled with long-term appreciation for investment properties."