NewHavenBIZ

12 n e w h a v e n B I Z | J a n u a r y 2 0 2 3 | n e w h a v e n b i z . c o m Ever Higher $160M sale of 360 State apartments sets new standard for New Haven multifamily market By Liese Klein I ts windows glittering high above the interstates, the 360 State apartment building has shaped New Haven's skyline since 2010. With its 500 high-end units and initial use of a hydrogen fuel-cell power source, the building's rise marked the start of downtown's transformation into a luxury rental cluster. Now the 32-story landmark has notched another milestone: Selling for $160 million in a record-breaking transaction in November. MEPT Chapel Street LLC, or Multi-Employer Property Trust, sold the building on Nov. 7 to New York-based Ansonia State Street LLC, an affiliate of Beachwold Residential LLC. Beachwold, which owns about 6,000 units in the state, had just closed big deals in Norwalk and Stamford when 360 State started being "quietly marketed" in 2022, said CEO Gideon Friedman. Beachwold had been looking at build- ing from scratch in New Haven's hot market but saw 360 State as an opportu- nity to upgrade an existing property at a much lower cost per unit, he added. "We've been operating in and around New Haven for over 20 years at this point and so we've known about 360 since it was built," Friedman said. His company, "always just regarded it as a great iconic building for New Haven." Real estate experts and city officials agree that the price tag for 360 State was eye-popping but in line with a rental market that continued to see strong demand throughout 2022. "New Haven is one of the most attractive markets in the state of Con- necticut for investment in general and for apartment buildings," said Brad Balletto, co-founder and senior vice president for investments at Northeast Private Client Group. Balletto has worked on several major apartment building deals in the New Haven area in the past year, in- cluding last month's $34.6 million sale of six multifamily properties with 145 units on Howe Street and Edgewood Avenue in New Haven. New Haven's biotech and higher ed-fueled market is increasingly draw- ing comparisons to another Ivy college town up the coast, Balletto said. "I've even heard investors agree to this characterization to call it a mini-Cambridge," he said, adding, "Cambridge is one of the strongest real estate markets in the country." e 360 State deal is notable pri- marily because of the large number of units involved, Balletto said. e purchase price works out to about $320,000 per unit, not inordinately high for a recently built luxury build- ing, he said. "Outside of Stamford you're not going to find many properties of this size, and additionally, it's newer con- struction, a luxury property that can command high rents," Balletto said. Top 2022 multifamily apartment sales in New Haven Property Address Sale Price Building SF Number of Units 360 State St $160,000,000 573,300 500 265 College St $52,500,000 181,325 194 275 Winchester Ave (Part of Portfolio) $41,503,686 348,184 158 152 Temple St (Part of Portfolio) $29,150,000 98,400 123 100 Howe St $18,800,000 37,467 100 104 Howe St $15,800,000 40,646 97 441 Chapel St (Part of Multi-Property Sale) $5,084,357 42,430 23 76 Sherman Ave $3,300,000 23,800 22 192 Fitch St $2,200,000 16,532 8 258 Nicoll St $2,180,000 7,026 6 Source: CoStar The 32-story 360 State apartment building changed New Haven's skyline when it debuted in 2010, and ushered in a new era of luxury apartments. PHOTOS | COSTAR

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