RABIN ALEXANDER BUYS CONNECTICUT APARTMENTS

As seen in the January 29, 2007 issue of Real Estate Finance & Investing

Investor Rabin|Alexander has closed on the acquisition of Newbury Village Apartments, a Class A complex in Meriden, Connecticut for $30.2 million or around $168,000 per unit. Tarragon Corporation, the developer, sold the 180-unit property. Victor Nolletti and Steve Witten of Marcus & Millichap represented Tarragon in the sale.

Nolletti said there were a number of competing bids within one percent of each other. Rabin|Alexander won the deal because of their ability to close quickly. The sales price represents a 6.10% cap rate based on a 90-day trailing NOI for the 97% leased, 93% occupied, brand new complex. He added that Connecticut's apartment markets to the North and East of Fairfield County are expected to see more institutional activity in the coming year. This could lead cap rates to compress by 30 to 60 basis points.

Calls to Meridian were not returned. Officials at Tarragon could not be reached for comment. Meridian Capital arranged financing via Morgan Stanley.