Saturday, January 5, 2013

Sacred Heart University Student Housing Property in Bridgeport, CT Sells for $2.65 Million

Taft Commons, 225 Taft Ave., Bridgeport, CT
                                                                              BRIDGEPORT, CT – Investment sales broker Northeast Private Client Group has announced the sale of a student housing property at 225 Taft Avenue in Bridgeport, CT.

 Edward Jordan, JD, CCIM, the firm’s managing director, represented the seller, Redbrick Partners of Washington, D.C. in the $2,650,000 transaction, which closed on December 27. 

 The student housing property, known as Taft Commons, comprises 20 townhouse style units in an elevator building that has been leased to Sacred Heart University (Fairfield, CT) since the mid-1990s.  The University recently signed a three-year lease extension through 2015.

Edward Jordan
 “Our recent sale of Taft Commons sends a clear signal that the student housing market continues to offer an attractive alternative to other asset types,” notes Jordan.  “In this instance, the asset was master leased to and managed by the University, minimizing the vacancy risk to the investor as well as the expenses typically associated with management and operations.”

 The seller, a Washington, D.C.- based REIT, originally acquired the property in a transaction brokered by Jordan in March 2005.  The buyer, a New Jersey-based fund, purchased the Taft Commons property for a price that equates to $132,500 per unit, or $24,090 per bed, a common indicator in student housing.

Sacred Heart University, Fairfield, CT
The sales price represents a capitalization rate of 9.0 per cent on the current year’s net operating income.  The buyer was represented in the transaction by Christopher Tichio of Alexander Summer LLC.

“With a strong regional presence across Connecticut, New York and Massachusetts, our investment sales team is well positioned to support multifamily and commercial investors across an expanding range of asset types,” Jordan explains.


Rick Leonard

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