New Haven’s international profile and high rental demand is attracting investors from around the Northeast region. Located along the I-95 and I-91 corridors, New Haven enjoys Amtrak and local rail service to both New York and Boston. The city is a thriving community of generational, ethnic, and educational diversity, and is home to a number of educational, healthcare, and cultural institutions. Its emphasis on education and health sciences contributes to steady job growth, while New Haven’s arts and entertainment scene makes it an enjoyable community to call home.
High single-family housing costs and an energetic downtown lifestyle are dual drivers for residents seeking to rent rather than buy in Connecticut’s most dynamic small city. These unique demographics translate into strong local occupancy rates and rent growth. According to New Haven Biz, for the past three years apartment demand has exceeded new supply by more than 2,000 rental units, contributing to a 3.6 percent vacancy decline during that time.
“This is a vibrant, growing community that is unlike any other in Connecticut,” explains Bradley Balletto, VP Investments. “As redevelopment continues across the city and employers expand their footprint in Greater New Haven, the market only stands to become stronger for multifamily investors.”
New Haven is a blend of the traditional and the contemporary, and is home to a robust talent pipeline, a growing number of bioscience companies, and cultural attractions like the College Street Music Hall and Yale University Art Gallery. Its bourgeoning health and tech communities have created the need for new and improved work, residential, and entertainment spaces. This provides the perfect opportunity for investors seeking either value-add multifamily properties or adaptive reuse projects in the area. An example may be found in The District. Located on the outskirts of New Haven’s affluent East Rock neighborhood, The District is a recent adaptive reuse project that turned an old garage into an innovative tech business campus. This exemplifies a trend of developments adjacent to desirable neighborhoods which expand the demand for housing in these areas.
“What’s unique about New Haven is that the vitality of the city isn’t isolated to one neighborhood,” Balletto said. “For example, there’s new residential inventory coming to market in the central business district, the site of the former New Haven Coliseum in the Ninth Square is poised for mixed-use development and the once empty Comcast site in Worcester Square will soon be redeveloped to new multifamily housing.”
Northeast PCG continues to lead the market in the sale of multifamily properties to investors looking to capitalize on the strength and expansion of the New Haven market. Most recently, its NY/CT Metro North investment sales team closed on five separate multifamily transactions including 90 Norton Street, a 30-unit multifamily property sold to a NYC-based investor for $2,900,000. This sale was driven in part due to 90 Norton’s proximity to Yale New Haven Hospital’s St. Raphael’s Campus, which recently announced an $838 million, 500,000 square foot Neuroscience Center expansion. Likewise, the 24-unit multifamily property located at 1495 Ella Grasso Boulevard was also sold to an investor seeking to improve operations at the architecturally significant property to provide updated, attractive rental options for New Haven’s dynamic tenant base.