Rhode Island
Another New England market to watch in ’07 is Providence, R.I., where recent brownfield redevelopment and downtown revitalization efforts are sparking real estate investment.
In spring 2006, the federal government committed $1.4 million to redeveloping contaminated brownfields in the Rhode Island. Providence also received a grant to clean up the former Lincoln Lace and Braid Mill site, which will clear the way for the construction of two soccer fields. And three years ago, the U.S. Senate provided money for the enhancement of the Woonasquatucket River Greenway, a seven-mile green corridor that runs west from Providence to Smithfield.
In a similar project, Burrillville, R.I., received funding to clean up the Stillwater Mill Complex, which will allow the city to replace a 1935 library with a modern structure. The new library and meeting center is the centerpiece of the $70 million Stillwater Mill project, which will provide seniors and affordable housing for community members.
In all, approximately $92 million in five apartment sales were closed in Providence in 2006 (as of this fall), including the $52 million sale of Cumberland Crossing, a 288-unit apartment complex in Cumberland, R.I. Apartment units in the Providence metro area sell for a median price of $58,594.
New Hampshire
Two major sales made headlines in New Hampshire this year. In Nashua, Princeton Properties acquired Boulder Park, a Class B asset, for nearly $54 million. It’s a large property, encompassing 40 acres of land, 14 buildings, and 482 units. And, in Concord, Dolben Co. of Burlington, Mass., purchased its first New Hampshire holding: the Class B Penacook Village Apartments. The deal, which is valued at $17.6 million, includes 45,000 square feet of commercial space.
Why the interest in New Hampshire? Improving demographics and a relatively inexpensive cost of living, which allows smart investors the chance to take advantage of value-added properties in the state.
Maine
Southern Maine is growing, which is great news for the Portland multifamily market. So is the rest of the state. Since 2000, the state’s growth rate has nearly doubled.
In addition, a shift away from manufacturing is reshaping the state’s economy. Goods production, consumer services, and business services are fueling the state’s economy and account for a combined 41 percent of all employment in Maine, according to the Brookings Institute.
These changing demographics have lured large apartment owners to southern Maine. Lowell, Mass.-based Princeton Properties, which is one of the largest multifamily property owners in New England, recently acquired a 170-unit rental project in Falmouth, Maine, for $16 million.
As for overall investment sales conditions in the city, the median sales price per unit in the Portland metro area stands at $97,059, one of the highest in New England. There has also been some significant multifamily development activity for the market. According to Marcus & Millichap, five new apartment projects recently came online in the Portland area, with one more expected by 2006’s end.