The Boston-based GID has retained CB Richard Ellis to market Windsor at Brentwood. The 240-unit complex should be well-received by the market, predicts CBRE broker Paul Donahue. "It's an attractive property," Donahue says, relaying there are value-added opportunities connected to the asset that could help yield a capitalization rate in the 6% range for the buyer.
Constructed in 1987, Windsor at Brentwood features a dozen three-story buildings at 630 Smithfield Rd., situated on a 12.7-acre campus that Donahue terms as "meticulous" in its landscaping. Windsor at Brentwood is 97% leased, a rate Donahue says benefits from a solid location just four miles from Downtown Providence and a market that is seeing vacancies on the wane.
The arrival of Windsor at Brentwood to the sales block gives investors something to pursue after many multifamily owners stayed on the sidelines in late 2007 and at the outset of 2008. There remains a disconnect of expectations on both sides of the aisle, relays Donahue, who suggests one reason is that apartment owners are not being forced to divest the way many were in the early 1990s when there was a glut of supply and market fundamentals were weak. Neither is the case today, Donahue says, reporting both occupancy and rental rates are on the rise in southern New England's stronger markets. "Operationally, the real estate is doing very well," he says.
The pricing chasm may still be wide, but Donahue is among other multifamily sales brokers who anticipate the drought will be eased in the coming months. "We think so," Donahue says. He adds that he's aware of several apartment assets making their way to the sales block that should be brought to light in the next few months.
Early response to Windsor at Brentwood has been encouraging, says Donahue, who is handling the assignment with CBRE colleague Travis D'Amato. Prospects include private buyers and institutional capital.
Windsor at Brentwood has one- and two-bedroom units in various floor plans, with rents ranging from $1,000 to $1,600 per month. Attractions include an all-season indoor pool and hot tub, resident lounge with fireplace and recreational facilities including a lighted tennis court. "It's really rich in amenities," Donahue says.
Donahue explains a new owner willing to complete a capital improvements campaign started by GID could boost the project's upside. Interior upgrades in 43 of the 240 units have already resulted in an average monthly rental increase of $115, Donahue says. "When that is done, it should compete well as a class A property," he says.
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