New Haven County Market Overview March 2012 Presented

New Haven County Market Overview March 2012 Presented by: Steven K. Inglese, SIOR Brokers of Investment Properties & Development Sites www. The. New. Haven. Group. com 203 -773 -3060

Introduction n 2011 – The lost year! Is 2012 the year of the big thaw? n The news of the year n 2011 and 2012 market transactions n Where do we go from here?

The News of the Year n n High Tech Manufacturing Yale New Haven Hospital and St. Raphael’s to Merge n Quinnipiac Expands Graduate Campus New Medical School 2, 000 new graduate students to North Haven §Yale’s Endowment back over $20 billion

2011 Transactions

Annual Sale Transactions Per Conn-Comp

Apartment Sale Transactions Sunset Ridge, New Haven n Meeting House –Meriden 312 units – affordable housing Sold for $45 k/unit - $14 MM Belfonti Associates purchased from Winn Residential n n n 296 units + 13 k sf retail $53 k/unit - $16. 25 mm 7. 6% going in cap rate 1 & 2 Bd and Town houses Solomon Organization, buyer

Value Added Apartment Sales Trolley Crossing – East Haven n n 214 units 126 efficiencies and 88 -1 Bedrooms Sold for $45 k - $9. 6 mm 7% going in cap rate Beachwold Residential buyer 492 Fountain – New Haven n 72 units (1 and 2 beds) $59 k/unit $4. 25 MM Pike International buyer

9 Dixwell Ave, New Haven n 21 units + Ground Floor Retail, mostly studios $1, 900, 000 - $86 k/unit Redevelopment Play for Yale Univ.

Apartments –New Haven County n City of New Haven Apt Vacancy lowest in Country at 1. 9% --National average 5. 6% n City Class A rents range from $1. 75 to $2. 77/sf n Suburban Class A rents from $1. 25 to $1. 90/sf

360 State St – New 500 unit Complex 90% Occupied in 14 months

Office to Apartment Conversion Downtown Milford – 1 New Haven Ave n n n Former office building Purchased for Apartment mixed use redevelopment Close to Metro North REO asset Bob Smith - developer

Notable Retail Sales Silver Commons, Meriden n n Fedex Kinkos, Starbucks, Pizza Hut $7. 05 MM ($286/sf) – 8% cap / 9% equity return 26, 000 sf- built ‘ 07 Loan Assumption $5. 1 m Washington Trust 500 Derby Ave Derby n n n 170, 000 s/f , multi tenants $13. 7 mm ($81/sf) 7. 3% going in Cap

Office Sales Wellpath Buys E. Main St Waterbury $2. 2 MM - $77/sf User 1 New Haven Avenue – Milford Apartment Redevelopment 432 Washington Ave, North Haven Easter Seals Purchases n n 25, 000 s/f office $2. 2 mm ($88/sf) or $62 k per apt unit. n $1. 5 MM ($63/sf)

Medical Office Sales 6 Devine Street, North Haven 115, 000 s/f Office Yale New Haven Hospital to purchase from AT&T for Outpatient and Admin. 2560 Dixwell Ave. , Hamden 21, 000 s/f medical building $6, 855, 000 ($316/sf) Built in 2007

2011 Office Lease Deals 4 Fairfield Blvd Community Health Network Leases 23, 000 sf - $9/sf range At 4 Fairfield Blvd, Wallingford Campus At Greenhill Wallingford Occupies 1 st phase of 80, 000 sf of 217, 000 s/f lease Leases 28, 000 s/f -- $21/sf 10 yr

2011 Office Lease Deals IPP – 24, 000 sf 538 Preston Ave , Meriden $18. 50/sf $ - 40/sf T. I. – 10 yr Alliant Insurance Services – 15, 000 sf 55 Realty Drive, Cheshire Moves from Waterbury VNA – 10, 000 sf One Hamden Center $19. 50/sf - $40/sf T. I. – 10 yr

Industrial Sales 69 North Plains Highway, Wallingford 297 State St, North Haven n n n 65, 000 s/f $34/sf - $2. 2 MM Sold to United Concrete (owner user) 386, 000 s/f $9/sf - $3. 9 MM Former Printing facility Speculative purchase

Industrial Sales 205 Edison Rd Orange n n n 75, 000 s/f $2. 5 MM ($33/sf) Aurora Products (owner user) 1020 Research Parkway Meriden § 43, 000 s/f §$1. 25 MM ($30/sf) §Lasership (owner user)

2011 -12 Industrial Leases Allied Building Products - 86, 000 s/f 780 North Colony Rd Wallingford $3. 50/sf NNN CF Paper – 80, 000 s/f 351 Morgan Lane West Haven $3. 75/sf NNN

2011 -12 Manufacturer Leases LQ Group – 12, 000 s/f 33 Business Park Drive Branford $6. 50/sf NNN Forum Plastics – 34, 000 s/f 105 Progress Lane Waterbury $3. 65/sf NNN

Where’s The Market Going? n n Education and Healtcare Knowledge Based Workers in demand EDC of New Haven Survey shows 7, 500 freelance / self employed workers within the city of New Haven The Living Experience is what Counts n n n Access to transit Entertainment and cultural Housing

Start Up Companies in New Haven n n n Higher One Grey Wall Software Continuity Control Prometheus Research See. Click. Fix You. Renew Optherion Independent Software Paper. G Spot on Networks Retail Optimization Historx GSM Nation

Start Up Opportunities n n n The Grove - collaboration and incubator space for start ups CT Tech at Science Park – high tech incubator space The Bourse – Downtown collaboration and hoteling space.

How are these companies impacting the market? Science Park New Haven Mixed Use $150 million Development Rendering View Before View 140, 000 s/f office for Higher One 200 Market Rate apartments, with 20% affordable

Downtown Crossing – 400, 000 sf Bio tech Building Planned

In Closing n Healthcare and Education continuing to lead the charge n Strengthening Manufacturing sector n Apartment Market remains solid n Modest improvement in transactions for 2012

New Haven County Market Overview March 2012 Presented by: Steven K. Inglese, SIOR Brokers of Investment Properties & Development Sites www. The. New. Haven. Group. com 203 -773 -3060