Six Manchester apartment complexes with a combined total of 418 units recently sold for $65.7 million.
The sales, all recorded Aug. 26, were immediately preceded by a division of interests in the complexes between West Hartford apartment investor-operator KWK Management and two unnamed partners.
Robert Katz, of West Hartford, and Robert Koff, of West Simsbury, have long been partnered in KWK.
Katz, reached Friday, explained that he and Koff wanted to sell near a high point in the multifamily real estate market, and reinvest their share of the proceeds together in out-of-state pharmacy properties. KWK continues to own and manage multifamily properties in the area, Katz said.
“My partner wants to slow down some,” Katz said. “By taking some 400-odd units off the table, this will help him slow down.”
The division of the properties’ interest just prior to sale allows Katz and Koff to reinvest through a 1031 exchange, deferring capital gains taxes, Katz explained. The first purchase of a Manchester complex was followed by a stream of offers from other interested sellers in the town, Katz said.
“Going into Manchester, we had no idea how wonderful it would be,” Katz said. “We got on a roll. Once we closed one we got calls for others. We bought them all that way. It was just a fantastic market to be in. We just felt it was time to (separate from) the other partners and take different advantage of the values. They are insane.”
The properties were sold in separate transactions to separate LLCs. Each of the new owning LLCs were named for the complexes. All have an address at Stratus Equities LLC, 110 Hillside Boulevard, in Lakewood, New Jersey.
Attempts to reach a Stratus representative were not immediately successful.
The sold properties include:
- The South Adams Apartments, at 40 Olcott St., a 103-unit, brick-sided apartment building on 3.2 acres that was completed in 1965. It sold for $16.2 million.
- The Brownstone Apartments, at 337 Oakland St. and 55 Oakland Terrace, which includes six buildings completed in 1969 with a combined 51 units on 4.6 acres, as well as a seven-unit building completed in 1972 on six-tenths of an acre. It sold for $9.1 million.
- The Cooper Hill Apartments, at 1 and 2 Goslee Drive, which holds 70 apartments in five buildings built in 1960 on two properties totaling 4.4 acres. This sold for $11 million.
- The Huntington Commons, at 122 Sycamore Lane and 340 Charter Oak St., which includes 106 units in nine buildings on two properties totaling 8.7 acres. The buildings were completed in 1966 and 1967. It sold for $16.6 million.
- The South Park Apartments, at 37 and 59 Charter Oak St., which includes 59 units in four buildings on 3.3 acres. A three-family building here was completed in 1925. The other buildings were completed in the 1960s. This complex sold for $9.2 million.
- Pembrooke Court, at 131 Hilliard St., a 22-unit building completed on 1.5 acres in 1968.
The property was brokered for the sellers by Institutional Property Advisors, a division of Marcus & Millichap.
“An important residential center for North Central Connecticut, Manchester’s multifamily market benefits from the area’s high-quality of life, an abundance of services and proximity to Greater Hartford employment centers, said Victor Nolletti, IPA executive managing director. “The limited availability of quality, mid-market rental housing stock provides for long-term stability in this desirable submarket.”
Nolletti represented the seller with Eric Pentore and Wes Klockner.
“Assembling six quality assets and over 400 units was a challenging endeavor in this desirable New England town,” Pentore said.
