The DSF Group now has two apartment-style complexes in Westchester cities. It was announced Monday that it has purchased Avalon on the Sound East, a 588-unit, 39-story housing tower in New Rochelle for a reported $210 million.
This works out to be roughly $357,000 per unit and is one of the largest recorded multi-housing sales in Westchester.
Through transfer fess in the transaction the city of New Rochelle received $2,525,000 and the IDA $145,000, city officials said.
The project had received nearly $30 million in tax breaks and construction was completed in 2007.
“This (sale) shows people that New Rochelle is at the right place at the right time,” said Luiz Argon, Commissioner of Development for the city. “It is a transit-oriented development …. and a first step in a wonderful renaissance.”
Holliday Fenoglio Fowler, L.P. marketed the property on behalf of the seller, AvalonBay Communities, Inc.
Avalon on the Sound East is at 40 Memorial Highway within a block of the Metro-North Railroad’s New Rochelle train station and close to Interstate 95. Completed in 2007, it is described as a luxury high-rise with one-, two- and three-bedroom units averaging 956-square-feet each, as well as 7,607-square-feet of ground-floor retail. Community amenities include a 24-hour fitness center, outdoor heated pool, rooftop resident lounge, community room, game room, garage parking and 24-hour concierge service.
It is the larger of two Avalon complexes. The smaller is known as Avalon on the Sound and is a 25-story unit at 255 Huguenot Street.
The HFF investment sales team representing the seller was led by senior managing directors Jose Cruz and Andrew Scandalios, managing directors Kevin O’Hearn and Jeffrey Julien, and associate director Rob Hinckley.
According to Scandalios, “Avalon saw an opportunity to capitalize in a strong investment market.” “This is DSF’s second purchase in Westchester in the last twelve months. To complement its first high-profile property in downtown White Plains, the company will now also own the most prominent building in New Rochelle,” added Cruz.
Earlier this year, the DSF Group purchased the Ave White Plains at 25 Martine Ave., for $34 million from Korman Communities and BlackRock, Inc. The DSF Group is in the midst of upgrading it into a luxury apartment community that will bear the name, Halstead White Plains Metro North. The complex has 124 units.
AvalonBay Communities, Inc. develops, acquires and manages high-quality apartment communities in the Northeast, Mid-Atlantic, Midwest, Pacific Northwest and Northern and Southern California.
Since 2000, the DSF Group has invested more than $2 billion in five million square feet. With offices in Boston and Washington D.C., and three decades of experience, DSF Group converts and redevelops existing properties and develops new sites. It was named the 2011 Multifamily Development Firm of the Year by the National Association of Home Builders among other annual honors.
HFF and HFFS (HFF Securities L.P.) are owned by HFF, Inc. (NYSE: HF). HFF operates out of 21 offices nationwide and is a leading provider of commercial real estate and capital markets services to the U.S. commercial real estate industry.
(This post has been updated with new information from the city of New Rochelle.)