Fairfield County Real Estate Market Sponsored by the University of Connecticut November 13, 2008 Presented by Chris Kerin, MAI, CCIM Kerin & Fazio, LLC 363 Reef Road Fairfield, CT 06824 Phone: (203) 259-9500 ckerin@ctvaluation.com Kerin & Fazio, LLC
Kerin & Fazio, LLC
Wall Street failures – Lehman Bros Dow drops -35% since last year Shrinking Wall Street bonuses Job uncertainty Residential mortgage crisis Lack of liquidity in com’l markets Overseas investment dries up Demise of the CMBS market Kerin & Fazio, LLC
Darien, CT 27% $168,687 Westport, CT 19% $137,133 Bloomington, IL 26% $ 54,971 Hoboken, NJ 23% $ 81,356 W. Des Moines, IO 22% $ 61,303 Garden City, NJ 20% $121,831 Summit, NJ 20% $111,497 Westport, CT 19% $137,133 University Pk, TX 19% $110,976 Fruit Cove, FL 19% $100,479 Wethersfield, CT 19% $ 63,359 Kerin & Fazio, LLC Source: BusinessWeek
Kerin & Fazio, LLC
Kerin & Fazio, LLC
Kerin & Fazio, LLC
Fairfield County Retail Market Historically high building sales prices Vacancy rate < 5% Cap rates 5.50% - 7.50% Holiday sales will tell the story Kerin & Fazio, LLC
Retail Market Activity 21 Main Street, Westport $2,370/sf 382 Greenwich Avenue, Greenwich $1,052/sf 586 CT Avenue, Norwalk $1,344/sf 356 Greenwich Avenue, Greenwich $895/sf 45 East Avenue, New Canaan $581/sf 343 Greenwich Avenue, Greenwich $861/sf Lululemon, Main St, Westport $165/sf Cole Haan, Greenwich Avenue $145/sf Kerin & Fazio, LLC
Fairfield County Office Market Sales prices peaked in 2007 Vacancy rate 5% - 10% Cap rates 6.50% - 8.00% Watch out for vacancy in NYC Kerin & Fazio, LLC
Fairfield Metro Center Proposed Development - 2010 $500 Million project Town, DOT and Blackrock Realty 35 acres in eastern Fairfield Metro-North train station 1,500 commuter parking spaces 980,000 SF office 75,000 SF retail Hilton Hotel Kerin & Fazio, LLC
South Norwalk 95/7 Ventures Proposed Development The Maritime 12.5 acres I-95/Rte 7 550,000 SF office 100,000 SF retail 300 residential units 140 room hotel The Maritime $60 Million development 161 apartments 40,000 SF office 61 condos $450,000 - $1,500,000 condos Virgin Atlantic HQ Kerin & Fazio, LLC
Fairfield County Apartment Market Historically high sales prices Vacancy rate < 5% Cap rates 6.00% - 8.00% Holds value in weak housing market Kerin & Fazio, LLC
Harbor Point, Stamford 80 acre Waterfront Dev’t 10 years to complete 5,100,000 SF Apts (4,000) 300,000 SF Office 400,000 SF Retail 210,000 SF Hotel Gateway Harbor Point 700,000 S.F. Office (2 Buildings) Land Assembled for $3,400,000/acre ± Recapitalization BLT takes out Antares in Fall 2008 for $200 Million Kerin & Fazio, LLC
Stamford, Connecticut Trump Parc Tower Highgrove Ground Breaking Spring 2007 Completion Spring 2009 37 Stories, 170 Units $700,000 for 3 Bedroom Condos Over $1 Million Penthouse Condos Under Construction Completion Summer 2009 18 Stories, 83 Units 2,500 sf - 3,500 sf $1.3 M to over $3 Million Kerin & Fazio, LLC
Fairfield County Industrial Market Vacancy rate 5% - 10% Cap rates 7.00% - 8.50% Kerin & Fazio, LLC
Money waiting on the sidelines (15% - 20% floor) Demand for trophy properties (safe haven) Solid local owners (little or no debt) Lack of competing investment vehicles Insurance companies and local banks still lending Experienced long-term investors Kerin & Fazio, LLC
Thank You Chris Kerin, MAI, CCIM Kerin & Fazio, LLC 363 Reef Road Fairfield, CT 06824 Phone: (203) 259-9500 ckerin@ctvaluation.com Kerin & Fazio, LLC