The Kensington at 35 Clinton Place in New Rochelle, New York — Courtesy: JLL
By Joshua Burd
The owner of 54 apartments and an adjacent home in New Rochelle, New York, has tapped JLL’s Morristown-based capital markets team to sell the properties.
According to the brokers, the offering includes a six-story, 54-unit building known as The Kensington at 35 Clinton Place and a four-bedroom, single-family dwelling at 27 Clinton Place. They hope to attract would-be buyers seeking to capitalize on the properties’ location steps from the New Rochelle train station, which provides direct access to Grand Central Terminal via the Metro North Railroad, and less than a half-mile from Interstate 95.
“The Kensington presents a unique investment opportunity for investors, combining stable cash flow with significant value-add potential through the completion of a unit-renovation program for the property’s unrenovated units,” JLL wrote in its recent offering materials. “New ownership has the ability to fully renovate these units with high-end interior upgrades, providing the chance to capture increased rents and capitalize on the rapid rent growth in one of the fastest-growing submarkets, while also considering the short-term limitations posed by the (Rehabilitation Services Administration) regulations governing rent stabilized apartments in New Rochelle.”
Steve Simonelli, Elizabeth DeVesty, Mike Oliver, Jose Cruz, Austin Pierce and Pranav Patel are leading the assignment for JLL, with support from Matthew Pizzolato, Thomas E. Didio Jr. and Gerard Quinn of the firm’s debt and equity team. They noted that in-place rents at The Kensington are roughly $910 below market or roughly 55 percent under the competitive set of nearby properties.
Meantime, the brokers said the area has an average annual household income of $159,370 and an average home value of $731,858 within a three-mile radius.
“This strong demographic profile ensures sustained leasing demand and rent growth moving forward,” the firm added. “The downtown business location, within walking distance of New Rochelle’s many shops, restaurants and entertainment offerings, provides residents with true urban living in a suburban market.”
The Kensington, which was built in 1940, consists of nine studios, 40 one-bedroom units and five two-bedroom units.
