Post Road Residential Tabs CBRE to Sell 238 CT Apartments Near Yale

August 18, 2017 — By Joe Clements

Corsair Apartments, New Haven CT

NEW HAVEN, CT—Post Road Residential received rave reviews—and $145 million from its 2015 sale—for the developer’s transformational repositioning of a suburban Boston candy factory into residential, the asset trading via HFF in October of that year. Now a similar reclamation project here serving Yale University is being put on the block through CBRE/NE, brokers hired to harvest the Corsair Apartments are acknowledging in predicting another robust response among investors.

“This is the next generation of The Batch Yard,” CBRE/NE principal Simon J. Butler tells Real Reporter in reference to the Charleston Chew candy factory project, with his multi family team co-led by Biria St. John engaged as exclusive agents for the Connecticut building which is situated in the city’s trendy East Rock neighborhood. Corsair “is a really well-executed project” involving another repurposed factory, a multi-winged structure housing a host of industries over 135 years, no use more famous than Corsair, the legendary World War II aircraft whose propellers came from the plant.

Adolph and his mercurial lot faced an unprecedented aerial force in the Corsair, and CBRE/NE sees a novelty for the apartment property bearing its name, with an informational package declaring that “Connecticut has never seen anything quite like Corsair before,” the apartments coming on line this past year today at 100 percent occupancy with a heavy concentration of Yale University faculty, staff and students. “The demographics are really strong,” Butler relays, providing a recession-proof element to the asset that already is averaging nearly 10 percent on effective rental rates for renewals of its inaugural tenant class.

One document puts the average monthly rent for a Corsair living experience at $1,586 for a one-bedroom, one bath apartment; $2,808 for two-bedroom, two-bath units; and $5,300 for a “carriage-style” format with three bedrooms and two baths, which at 1,654 sf is more than double the average unit size of 817 sf. Features of the luxury apartments include ceiling heights from 9 to 18 feet; concrete and wood-plank flooring; industrial-inspired lighting and modern kitchen appliances, quartz countertops and “restaurant-style” fixtures.

A similar contrast of old versus new appears in the common areas and preservation of Corsair’s original factory windows, thick overhead wood beams and reclaimed steel trusses. Post Road “has done an excellent job keeping the heritage of the building and the (modern) amenities are really unlike anything else” available in the market today, observes Butler, who eschewed a request to address pricing estimates, the Corsair being pitched minus any allocation guidance.

About 60 percent of the occupants in the asset that is 100 percent market-rate have some connection to Yale University, with elements including close proximity to campus and an East Rock neighborhood that has numerous dining, entertainment, and retail establishments. But according to CBRE, the on-site attractions have been most influential in the fast lease up and loyal tenancy highlights a 19,000-sf exterior courtyard with a heated swimming pool, decked out cabanas, fire pit and grilling stations and even a lawn-side movie theater.

“There are unique amenities there that have never existed” in a regional apartment building, says Butler, observing Post Road Residential took many of the novel aspects conceived at the Batch Yard and incorporated them with fresh concepts and iterations. But wait, there is more—indoors. Corsair has a resident lounge anchored by a reclaimed wood bar and set against polished concrete floors and a 20-foot garage door that connects its 13,000 sf of amenities with the courtyard. There is a 3,200-sf fitness center with a yoga studio plus Peloton Cycle spin room.

Besides Butler and St. John, the CBRE/NE team assisting on pitching Corsair includes First VP John McLaughlin and Senior VP Gene Pride, he based in the firm’s Connecticut office. The opportunity is being rolled out this week, reports Butler, with tours anticipated in the coming weeks followed by a call for offers. Besides private capital and other investors, Butler says he “definitely” expects the institutional set will find Corsair worthy of a gander, providing both the deal size and stability such funds are often pursuing. “It is a very marketable asset thanks to Post Road’s desire to create something special,” says Butler.

Although its principals possess over 85 years of industry experience, Post Road Residential has only been in existence since 2011, having been founded by Connecticut native Andrew Montelli, an alum of Fairfield Residential and Trammell Crow. Headquartered in Fairfield, CT, the firm focuses on urban infill multifamily housing aimed at meeting institutional-grade mettle. The Interstate 95 corridor between Boston and New York City is the firm’s geographic focus. Its brain trust is managing or has created over 1,350 residential units valued in excess of $450 million since entering the fray.