Avalon Selling Avalon on the Sound East: NRIDA PILOT “significantly enhances the cash yield”

Written By: Talk of the Sound News

A real estate broker is running ads for Avalon 2.

The ad features the line:

“The Property also benefits from a PILOT (payment in lieu of taxes) agreement with the City of New Rochelle that is in effect through 2035, which significantly enhances the cash yield of the investment (emphasis added).

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Class A Transit Oriented Apartment Building Located
in New Rochelle, New York

Holliday Fenoglio Fowler (HFF) has been retained on an exclusive basis to arrange the sale of Avalon on the Sound East (the “Property” or “Avalon Sound East”), located at 40 Memorial Highway in New Rochelle, New York.

Located in prestigious Westchester County, the Property is within one block of the Metro-North Railroad’s New Rochelle train station and less than a mile from Interstate 95 (New England Thruway), providing exceptional access to New York City and other regional employment centers (including Stamford, CT and White Plains, NY). Avalon on the Sound East, constructed in 2007, is a luxury high rise mixed-use building containing 588 market rate apartments and 7,607 square feet of ground floor retail within a 39-story tower. Avalon on the Sound East represents a unique transit-oriented “core investment” opportunity. The Property also benefits from a PILOT (payment in lieu of taxes) agreement with the City of New Rochelle that is in effect through 2035, which significantly enhances the cash yield of the investment.

Property Summary
Address
40 Memorial Highway, New Rochelle, NY
# of Apartments
588
Occupancy
98% as of 5/7/13
Year Built
2007
Lot Size
2.0 acres
Building Layout
One (1) 39-story apartment building
Average Apartment Size:
956 SF
Total Retail (SF)
7,607 SF (currently 32% economically occupied)
Parking
691 total spaces (1.1 per home)Investment Highlights

Building Amenities

* 24-hour modern fitness center
* 24-hour concierge service
* Outdoor heated pool
* Landscaped courtyard
* Rooftop resident lounge
* Community room and game room
* Laundry facility
* Garage parking
* Ground floor retail

Apartment Features

* Spacious apartments with an average size of 956 square feet
* Gourmet kitchens with black granite countertops and GE black-on-black appliances
* Ceramic tile flooring in the kitchens and bathrooms
* Hardwood flooring in living rooms
* Walk-in closets
* Washer and dryer in each apartment (except in studio apartments)
* Select apartments have terraces and kitchen islands

Investment Features

* Transit oriented properties command a rent premium among suburban New York locations.
* New Rochelle offers an “urban living” environment with convenient access to employment and services, at a more affordable price point compared Manhattan / Brooklyn / White Plains.
* The Property can be acquired below replacement cost.
* The Property is being offered free and clear of existing debt.