Interests in Suburbs Results in Multifamily Property Swap
Fairfield Properties and Eagle Rock reached a unique deal, involving trading properties on Long Island, NY.
NEW YORK CITY—As the New York City housing crisis continues, interest is growing in suburban properties. CRE owner and developer Fairfield Properties, headquartered in Melville, NY, owned Fairfield Courtyard, a 232-apartment workforce complex located at 35 Penataquit Ave. in Bay Shore, NY. They sold the property to Eagle Rock, a real estate firm located in Plainview, NY. A source with information on the deal tells GlobeSt.com that the price was approximately $58 million.
CBRE’s Jeffrey Dunne, Gene Pride and Eric Apfel represented Fairfield Properties, and also procured the buyer, Eagle Rock.
With the second part of the deal, Eagle Rock owned the Preserve, an 80-apartment townhome property located at 2135 Route 112 in Coram, NY. Eagle Rock sold this property to Fairfield (the seller of the previously referenced Bay Shore property.) Fairfield owns the Fairfield Townhomes at Coram, property that is adjacent to the Preserve. The source tells Globest.com the sales price for the Preserve was about $30 million.
Dunne describes the sales as effectively creating an exchange of properties. He also says it was a unique transaction accretive to both seller and buyer. “We expect that both properties will perform well moving forward, leveraging off the intrinsic strengths of the new owners and the strong historical performance of each,” he adds.
CBRE point out that Fairfield Courtyard at Bay Shore is near local and regional employers. The firm notes the development is close to Bay Shore’s walkable downtown and the Long Island Railroad. CBRE also points out that the property has a strong financial track record of durable cash flow growth, with rent growth averaging above 3.2% per year since 2012.
The real estate advisors also underscore that the Preserve is located at the intersection of Route 25 and Route 112. This provides access to employment in Port Jefferson, Medford and Patchogue. In addition, the Long Island Railroad conveniently connects the suburb to New York City.