Connecticut Real Estate Investor Meet-up

 

Connecticut Seasoned Investors, Newbies, and Service Professionals,

Just want to remind everyone that's interested that we'll be getting together Next Wednesday Evening, July 30th (a week from tonight) in Fairfield, CT for a meet-up. There's no fees and pitching of any kind, we just get together at a local lounge to network and get to know each other.

 

Looking forward to seeing everyone that can make it!

 

Location: The back room of Anna Liffey's: 1494 Post Road, Fairfield CT 06824
HELPFUL PARKING TIP: ANNA LIFFEY'S IS ACROSS THE STREET FROM VICTORIA'S SECRET, AND THERE IS A FREE PUBLIC PARKING LOT ACROSS THE STREET AFTER 7PM.

Meriden Mayor Wants To Eliminate Landlord Fees

A first term mayor in Meriden is coming under fire for his plan to eliminate a program that keeps a close eye on landlords and their rental units. While some renters are up in arms, Mayor Manny Santos said he is sticking to his guns, saying the current program is bad business for the city. 
A student at Middlesex Community College in downtown Meriden, Troy Wiley said as a renter, he's had his fair share of lousy landlords.
"Not bad enough to complain, but pretty bad," Wiley said. "Me I'm the type that would just get up and move if it was that bad."
Wiley said he had some concerns when we told him about Santos' recent line item budget veto.
In an effort to trim the budget, Santos wants to get rid of Meriden's certificate of compliance program and defund the housing division, which he said would save roughly $70,000.
Since 1980, Meriden requires landlords to pay $25 every two years for each of their rental units. The city's housing inspectors then check those units to make sure they're up to the city's codes and regulations.
"At this point, I think it's an intrusive program, having out city inspectors going into rental units, private property every two years is too much," Santos said. "It shouldn't be a function of our city."
Santos said the current program does more harm than good and claimed it discourages investors from town.
"I want a process in place that's efficient, if a renter or a landlord has a complaint, I want that complaint acted on quickly and decisively," Santos said.
Just because he wants to eliminate the certificate of compliance, Santos said this doesn't mean landlords will have free reign. Rather Santos said the city will take a reactionary approach and that renters will need to step forward when there is a problem.
Others said they are concerned though that without that oversight, some landlords will let their rentals go.
It's why Thursday night's special council meeting looking at the veto and also including a resolution to review the current housing code is expected to be packed and contentious.
"Some landlords feel they don't need to do anything because they don't live in Meriden," Wiley said. "They live in New York, so they look at Meriden as their last priority."
Thursday night's special city council meeting is set for 6:30 p.m. at Meriden City Hall.

Story by:

WFSB

Hartford's Real Estate Market Outlook

The Hartford Connecticut Real Estate Market is expected to surge this year by 8.3% according to CNN Money. The City of Hartford should thank Obamacare for these forecasted home price gains. Home to some of the nation's biggest insurers, like Aetna and UnitedHealth Group, the new health care law has helped these firms expand and bring jobs to the area, according to Thomas Deller, who directs development for the city of Hartford.
All of the white-collar jobs have kept household incomes high -- at a median of more than $85,000 last year. That makes the area's median home price of $234,000 quite affordable for most residents.

CoreLogic forecasts a 12-month gain of 8.3% and sees another price increase of 6.6%, for the 12 months after that.

With such a strong market outlook, Hartford is the place to be for investors.

Click Here to see available properties in and around the city.

Investors Buy Another Student Apartment Complex Near UConn

Investors have purchased another student apartment complex near the University of Connecticut’s main campus in Storrs, adding to a string of sales in the past 18 months. The 76-unit Renwood Apartments was purchased for $4.3 million by Renwood Apartments LLC of Waterbury, according to Hartford-based Chozick Realty, which represented the seller, 175-35 OAP Holdings LLC of Maryland.

Renwood  includes 32 one-bedroom and 44 two-bedroom units and 46 garages.
Broker Rick Chozick told me the new owners don’t plan any immediate renovations to the 35-acre property.

Chozick said investor activity near the UConn campus is strong because there is limited off-campus apartment options. The student population also is expected to grow, now that the state has approved $1.5 billion “Next Generation Connecticut Initiative” with an emphasis on science, technology, engineering and math studies.

New apartments are being added to the area in the Storrs Center, mixed-used development on the southern edge of the UConn campus.

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The Mortgage Expo Returns to Foxwoods

The New England Mortgage Expo is returning to the region Jan. 17, 2014 at MGM Grand at Foxwoods Resort Casino.

 

The largest mortgage expo in New England, it is sponsored by The Warren Group, which publishes The Commercial Record and keeps on top of industry trends such as home sales and foreclosures. On tap will be dozens of exhibitors, top industry speakers, live podcasting and networking opportunities.

The event, which covers both residential and commercial real estate issues, includes a buffet breakfast and lunch.

 

For information, visit www.nemortgageexpo.com or contact The Warren Group at (617) 896-5344 or via email at nemortgageexpo@thewarrengroup.com.

New Connecticut based REIT is coming to town

(AP) Starwood Property Trust Inc. (STWD) (A Greenwich CT based REIT) said it will spin off its single-family rental-home unit into a real estate investment trust headed by Waypoint Real Estate Group’s management division, which is being acquired in the deal.
The spinoff, Starwood Waypoint Residential Trust, held $750 million in 4,268 homes and non-performing loans on 1,549 properties as of Sept. 30, Starwood Property said in a statement. The new REIT will receive $100 million in cash from its parent, a $400 million line of credit and no debt, which will position it to be the second-largest publicly traded single-family rental REIT by portfolio value, according to Starwood Property Chairman Barry Sternlicht.
“We’re buying $50 million to $60 million homes a month and the baby is getting a little large -- like Moby-Dick,”Sternlicht said. “With Waypoint, we’ll have best-in-class management that has capability proven to get to scale.”

 

Wall Street-backed investors have been racing to buy houses as prices, which fell as much as 35 percent from their 2006 peak, are rising at their fastest pace in seven years. Demand for rental homes is growing from millions of households that went through foreclosure or can’t qualify for a mortgage.
Sternlicht, 52, will be chairman of the new company, which he expects to begin trading publicly on the New York Stock Exchange under the ticker SWAY in February. Gary Beasley and Doug Brien, Waypoint’s current co-chief executive officers, will serve as co-CEOs of the new company.
Sternlicht, whose Greenwich, Connecticut-based Starwood Capital Group has $26.3 billion under management, began investing in distressed real estate after the 1980s savings-and-loan crisis. Starwood Property is a REIT managed by a Starwood Capital affiliate.

Read the full story here

Westport Family Sells Village Center for $54 Million

(AP) Kowalsky family sells 90,000 square foot retail asset on Post Road East to real estate investment trust.

The Village Center, a 90,000 square foot neighborhood retail center situated on approximately 7.55 acres along Post Road East in Westport, sold for $54.25 million last week.

The Kowalsky’s of Westport sold the family-owned retail property to Equity One, Inc. (NYSE: EQY). The family broke ground on the site in 1969, since then the four-building retail complex has become a prime shopping destination and is currently anchored by The Fresh Market, Dunkin Donuts, Little Gym, The UPS Store, KOKO Fit Club and SweetFrog.

“There is a high demand for irreplaceable properties such as this since the current zoning codes prevent new construction exceeding 10,000 SF in any one building,” said Jon Angel, President of Angel Commercial L.L.C., a Southport based commercial real estate brokerage firm. “Furthermore, there is a strong and competitive audience to acquire cash flowing assets in proven retail markets. The demographic profile of the area created the opportunity to produce a reliable income with long term growth.”

The acquisition of The Village Center by Equity One, Inc. compliments their existing Westport assets and adds to their $1 billion Northeast portfolio, which includes five retail centers located within Fairfield County, according to Angel.

http://westport.patch.com/

Foxwoods Expansion Set to Begin Sept 26th

A much-delayed groundbreaking for the outlet mall planned at Foxwoods Resort Casino is scheduled to take place this month, according to Tanger Factory Outlet Centers, one of the project's partners.
The groundbreaking "celebration" is set for Sept. 26 in the courtyard in front of Foxwoods' Grand Pequot Hotel, an announcement from Tanger says. Scheduled to attend are Steven B. Tanger, the Greensboro, N.C.-based developer's president and chief executive officer; Rodney Butler, chairman of the Mashantucket Pequot Tribe, which owns Foxwoods; Gov. Dannel P. Malloy; and Scott Butera, Foxwoods' president and CEO.
"The tribe and Foxwoods are looking forward to this new and exciting development here at Mashantucket," Bill Satti, a spokesman for the tribe, said Tuesday. "They feel this new addition will enhance the pre-existing world class resort that Foxwoods is known for, and Foxwoods will continue to be one of the premier destinations for patrons and guests here in the Northeast."

The project, first announced in February 2012, calls for 312,000 square feet of retail space linking the Grand Pequot Hotel and MGM Grand at Foxwoods, the freestanding casino built near Foxwoods' main complex.
The groundbreaking originally was set for spring 2012, then repeatedly was pushed back. Harsh winter weather and delays in securing agreements with mall tenants were blamed for delays in the start of construction this year. The mall was scheduled to open in 2014.
Tanger, among the largest owners, developers and managers of outlet shopping centers in the United States and Canada, is partnering on the project with Gordon Group Holdings of Greenwich. The Tanger Outlets at Foxwoods would be built on land the partners are leasing from the Mashantuckets.
The mall, scheduled to open next year, is expected to comprise some 80 stores, none of which has been named yet publicly.
State economists last year hailed the project as a potential boon to southeastern Connecticut's economy, providing 400 temporary constructions jobs and about 900 permanent full- and part-time jobs once built.
Tanger owns the Tanger Outlet Center off Interstate 95 in Westbrook.
Both of southeastern Connecticut's casinos have planned retail expansions in a bid to bolster their nongaming offerings.
In June, Mohegan Sun announced plans to add 200,000 square feet of space devoted to retail, entertainment and dining — the Uncasville casino's first expansion in five years.
The $50 million Downtown District is to be built next to Mohegan Sun's Winter Garage and is to include a food pavilion, a 14-screen movie theater, an upscale bowling alley and a "promenade" of shops, including Coach, Tiffany, Sephora, Tommy Bahama, Puma and others.
Two development firms, the Morristown, N.J.-based Hampshire Companies and The Bronson Companies of Beverly Hills, Calif., are partnering on the project, which they would build on land they would lease from the Mohegan Tribe, which owns Mohegan Sun.
Mohegan Sun had indicated the groundbreaking would take place this fall, with the new outlets opening in early 2015.
A Mohegan official said Tuesday he was still hoping for a groundbreaking "this year."

www.TheDay.com

The CT CHAMP Initiative Program is underway

Governor Malloy today announced a state investment of more than $16.5 million in five housing developments in Hartford, Waterbury, Vernon, Stonington and Middletown for projects that will help build or renovate approximately 465 residential units, of which at least 390 will be affordable to income-qualifying households.

 

The funding, through the Competitive Housing Assistance for Multifamily Properties (CHAMP) initiative administered by the Connecticut Department of Housing (DOH), is a part of the Governor’s commitment to bolstering Connecticut’s economy and building stronger communities by expanding affordable housing opportunities.

“Affordable housing is a key ingredient to turning the Connecticut economy around and making sure it continues to grow in the future,” Governor Malloy said.  “With more affordable housing options, we can attract talent, grow our economy, strengthen commerce, and create the communities that will be more competitive in today’s business climate.  When we invest in housing, we invest in people, communities, and our economic future.”

Through CHAMP, owners and developers of affordable multifamily rental developments can apply for loans and grants to expand or rehabilitate housing.  Funds awarded under this program may be combined with financial assistance from the Connecticut Housing Finance Authority (CHFA), including taxable bond financing or tax exempt bond financing with four percent Low-Income Housing Tax Credits (LIHTC). LIHTCs provide the additional equity developers can leverage to make affordable housing projects possible.  CHAMP funding is intended to be gap financing and may not exceed $5 million per development.

The total project development costs are more than $75 million, with $16.5 million coming from the state and $59 million coming from other sources, including developer equity, private financing, and federal funding.

“Over the last two years, Governor Malloy has brought a renewed vigor to the state’s affordable housing policies and backed it up with financial commitments,” Housing Commissioner Evonne Klein said.  “The CHAMP initiative is just one of the ways we promote workforce, affordable, supportive, and congregate housing for the state’s young professionals, working families, elderly, and other individuals most in need of support.”

 The CHAMP investment announcements made today include the following:

• Horace Bushnell Congregate Apartments, Hartford — Funding will allow Horace Bushnell Homes to convert the 60 existing affordable elderly rental units into assisted living units.  Horace Bushnell Homes received funding in excess of $2,300,000 under HUD's competitive Assisted Living Conversion program for this much needed project, which will maintain the permanent affordability of all 60 units.  This project, located near the Albany Avenue and Vine Street intersection, ensures this elderly population can access nearby commercial services.

      DOH funding: approximately $760,000

• Old Middletown High School Apartments, Middletown — Built in 1894, the Old Middletown High School at 251 Court Street was converted into a 65-unit senior housing development in 1978.  State funding will assist in the rehabilitation and guarantee continued affordability for 40 years.  Rehabilitation will include masonry repair, new windows, energy-efficient boilers, upgraded kitchens and bathrooms, ADA modifications, and improved community space, improvements that will reduce energy use by an estimated 49 percent.  The apartments, which are just blocks from the center of Wesleyan College’s campus and Middletown’s vibrant Main Street, are affordable for residents with incomes below 60 percent of area median income.  There will be no displacement of residents as this will be in-place rehabilitation.  The project will leverage nearly $8 million in non-state funds

      DOH funding: $4,561,000; CHFA funding: $4.2 million in four percent LIHTC equity, and $2.6 million in tax-exempt bond financing

• Spruce Meadows, Stonington — DOH funding will help in the construction of the new Spruce Meadows mixed income housing development project.  Spruce Meadows includes the creation of 32 deed restricted affordable units in the 43-unit development.  The development is located on Route 1 in the Pawcatuck section within a mile of shopping and commercial services and served by the Southeastern Area Transit bus system.   The affordable units will be preserved for households with incomes ranging from 25 to 100 percent of area median income and five of the affordable units will be dedicated for supportive housing.  The project will leverage more than $5.3 million in non-state funding.

      DOH funding: approximately $5 million

• Park West Apartments, Vernon — Funds will assist in the rehabilitation of the Park West Apartments, an affordable mixed-income family rental development that has 189 rental units in 13 buildings originally constructed in 1968, and guarantee continued affordability for 40 years.  The apartments include 30 market and 159 affordable units for individuals and families with incomes below 60 percent of area median income.  Twenty of the affordable units will have supportive services provided.  Renovations will include drainage improvements and erosion control on the site, accessibility improvements to the apartments and construction of a new community building.  New boilers, additional insulation and other energy-efficiency measures are estimated to reduce energy use by 50 percent.  State funding will leverage more than $22 million in other funding.

      DOH funding: $2.2 million; CHFA funding: $6.1 million in four percent LIHTC equity, and $15,910,000 in tax-exempt bond financing

• Watertown Crossing, Waterbury — State funds will be used to assist in the purchase and rehabilitation of the existing Watertown Crossing project in the northwest section of the city.  Built in 1995, the development has 19 buildings with 108 two, three, and four-bedroom apartments designed for families.  The complex needs moderate rehabilitation work, including roof and window replacements, new parking lots, driveways and ramps for handicap units.  Interior work includes new flooring, kitchen and bathroom upgrades.  New gas furnaces will be installed and 11 units will be renovated for handicap accessibility.  The apartments, which are near bus services and Route 8, are affordable for residents with incomes below 60 percent of area median income.  State funding guarantees affordability for 40 years and will leverage more than $14 million in non-state funds.

      DOH funding: $4 million; CHFA funding: $5.1 million in four percent LIHTC equity and $5.5 million in tax-exempt bond financing

Applications for the next round of CHAMP funding are due on December 16, 2013.  Additional information regarding application requirements will be released shortly.  The CHFA/DOH application and CHAMP initiative outline are available on the DOH Web site at www.ct.gov/doh and CHFA’s Web site at www.chfa.org.  CHAMP funding requires State Bond Commission approval.

Saybrook Breakwater Lighthouse Sold at Auction

The Saybrook Breakwater Lighthouse off the Connecticut shoreline — put up for auction earlier this summer by the federal government has been sold to a private owner for $340,000.The new owner of the Old Saybrook lighthouse is Kelly K. Navarro, a spokesman for the General Services Administration, the federal agency charged with selling lighthouses.

Navarro’s plans for the lighthouse, located near the former Katharine Hepburn estate in Fenwick, couldn’t be immediately determined Sunday. But the GSA spokesman says that Navarro was negotiating a required lease with the state on the submerged land under the lighthouse.

The first bid on the 127-year-old lighthouse pictured on some Connecticut vehicle license plates was placed for $10,000. There was a flurry of bidding in the last week of the auction, pushing bids from $80,000 to the eventual high bid of $340,000, according to online bidding records.
The auction, which drew eight bidders and 24 individual bids, closed August 9.

Discriminating Connecticut Landlord Ordered to Pay $113,500

Landlords for a Windsor Locks apartment complex must pay $113,500 to prospective tenants for illegally refusing to rent to them due to race, authorities say.

Federal Judge Janet C. Hall determined that Merlien Hylton, owner of 5 Townline Road, her husband, Clifton Hylton, and Hylton Real Estate Management breached the federal Fair Housing Act in denying a lease to renters, the Connecticut U.S. Attorney's Office said Monday.

The judge this summer ruled in the case filed in October 2011 that the defendants discriminated in the terms, conditions, or privileges of renting to prospective tenants based on their race; and made discriminatory statements based on race regarding the rental of their property.

Merline Hylton was ordered to pay compensatory damages for the actions of her husband and HREM, Clifton Hylton, whom the judge determined "acted with evil motive'' and showed no remorse, and HREM were ordered to pay compensatory and punitive damages to the victims totaling $76,091.05, investigators said.

Hall also ordered the defendants to pay attorneys' fees of $37,422 to the Connecticut Fair Housing Center, which represented the victims.

The Hyltons and HREM couldn't be immediately reached Monday for comment.

(www.HartfordBusiness.com)

Construction Of Foxwoods Outlet Mall Set to Begin Before Year's End

The groundbreaking on an 85-store outlet mall at Foxwoods Resort Casino is set to begin by the end of this year.

Tanger Outlets Foxwoods is being developed by Greensboro, N.C.-based Tanger and Gordon Group Holdings of Greenwich. The $120 million project was supposed to begin in spring 2012, but delays in reaching deals with tenants brought plans to a grinding halt.

Not to be undone, Mohegan Sun announced plans for a $50 million expansion that will add 200,000 square feet and 50 new retailers to its complex.

Both malls will focus on luxury brands and help draw visitors that aren’t interested in gambling. No tenants have been announced as of yet.

Chick-fil-A coming to Connecticut

(AP) With all approvals in place, the new restaurant is expected to open on Federal Road in Brookfield by the start of 2014.The proposed Chick-fil-A restaurant slated to replace the Burger King on the south end of Federal Road in Brookfield — the first Chick-fil-A in Connecticut — has made its way through the zoning process, with demolition and construction scheduled to begin this fall.
If the project continues on schedule, Brookfield residents will be able to order a chicken biscuit and waffle fries by the new year.

The Zoning Commission held a public hearing on the 4,668 square-foot project and unanimously approved the plans in April and set a bond in the amount of $75,000 in May.

The new restaurant will include two drive-thru lanes for ordering that will merge into a single lane for payment and pickup. The dining area will be able to seat a maximum of 109 patrons, as well as a small patio area outside with five tables.

According to the application filed with the Zoning Commission and Inland Wetlands Commission, the new restaurant’s layout will be similar to the old one, with a drive-thru lane along the north side and a parking area with 58 spots on the south.

Though the building and parking area will take up 1,568 square feet more than the previous restaurant, state and local traffic authorities have determined that the expansion “will not substantially affect state highway traffic operations in the area,” according to a letter from the DOT sent July 26.

Chick-fil-A engineers estimate an additional 30 cars passing through the area during peak evening hours but do not expect any significant increase in congestion.

With DOT approval, construction on the new Chick-fil-A can begin as soon as the existing building is demolished. If demolition and construction work remains on schedule, the new restaurant should be open this fall or early 2014.