The CBRE team of Jeffrey Dunne, Jeremy Neuer, Gene Pride, Steven Bardsley, David Gavin and Eric Apfel announced today the sale of La Bonne Vie, a 915-apartment community in Patchogue, N.Y. for a total consideration of $232,500,000. The sale comprised of 626 market-rate apartments and 289 age-restricted (55+) apartments. CBRE represented the owners, an undisclosed consortium of partnerships in this transaction. The purchaser, Renaissance Management, is a family office based in the Metro New York area with significant experience in comparable workforce housing.
The offering presented investors with a generational value-add opportunity as 100% of units were preserved in the same condition since the properties were first built over 40-years ago. Due in part to its extraordinary scale, low cost basis and abundant amenities. The purchaser will be planning to invest substantial funds to enable the property to thrive in the 21st Century and provide quality housing to its tenants.
“We are honored to have represented ownership in this rare, generational sale. With their long-term vision and experience, Renaissance will do exceptionally well here with the planned renovation program,” said Jeffrey Dunne, Vice Chairman at CBRE. “Workforce housing is one of the strongest performing asset classes within the multifamily space, and Long Island is an incredible market due it its substantial supply constraints and strong rent growth. Workforce housing is coveted because there is simply no way to effectively compete with it. The cost to develop new product is so much higher than the cost basis of workforce housing so developers of new product are forced to target higher income renters.”
Built in the mid-1970’s and 1980’s, the properties represented the cutting edge of multifamily apartment-living at the time with their multiple clubhouses, indoor and outdoor pool facilities, gym, libraries and tennis courts. At the time, such extensive amenity packages were reserved for hotels and country clubs and represented the future of what would become a defining trend of amenity arms races for multifamily developments for decades to come.
This sale follows several other notable Long Island workforce housing sales that Dunne’s CBRE team completed in 2019 including the Home Properties Portfolio ($472.5M), Hawthorne Court ($94.25M), Mid-Island Apartments ($58.5) and The Preserve at Coram ($30.9M).
CBRE Institutional Properties is currently marketing for sale The Monroe, a 148-unit community in Morristown, N.J.; 181 New Street, a development site approved for 1,000 apartments in New Brunswick, N.J.; 24 Jones, a 152-unit community in Newark, N.J.; The Royce, a 340-unit apartment community in Trumbull, Conn.; The Waypointe, a 464-unit mixed use community in Norwalk, Conn. and a 414-unit development site in Middletown, Conn.
CBRE Group, Inc. (NYSE:CBRE), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (based on 2019 revenue). The company has more than 100,000 employees (excluding affiliates) and serves real estate investors and occupiers through more than 530 offices (excluding affiliates) worldwide. CBRE offers a broad range of integrated services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com.