New York-based Prescott Capital Management has acquired three Greenwich, Connecticut townhouse developments for $50 million (€39 million). The firm intends to convert the buildings from rentals to condominiums.
“These newly constructed buildings are built to the highest standard,” Daniel Steinberg, managing director at Prescott, said in a statement. “Given that they are already completed and are in excellent physical condition, the units can be marketed immediately and sold into an extremely strong and robust market.”
He also said the investment was “enhanced by the fact that the acquisition does not have to account for construction and market timing risks.”
The portfolio contains a total of 34 units. Milbank Commons and Field Crest, located within walking distance of the train station that provides a link to New York City, account for 24 of the units. Holly Hill, consists of 10 units located directly off Route 1.
One of the most affluent communities in Connecticut, Greenwich traditionally draws affluent homebuyers from New York City. Over the past decade, its commercial sector has expanded as executives seek offices closer to home.
“There is currently a strong demand for new product in the Greenwich real estate market, and a lack of available supply,” said Prudential Connecticut’s Julianne Ward, who will market the properties. “The three complexes should be well positioned to sell.”