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Avison Young arranges sale of Summerview Square development in Norwalk
October 24, 2022
Joint venture picks up award-winning, transformative housing development
NORWALK, CT –Avison Young has arranged the sale of Summerview Square, a multifamily property in Norwalk, CT for $18.08 million to a joint venture between Penny Lane, a real estate firm based in Stamford, CT, and Rowin Capital, an investment fund based in New York.
Completed between eight and 14 years ago, Summerview Square consists of 63 condo quality townhome-style units in four clusters, with 20 buildings in total and 71,863-square-feet (sf).Summerview Square has won three HOBI Awards, including Best Affordably Priced Rental Community, Best Rental Unit, and Best Fairfield County Smart Growth Community for its revitalization of the north side neighborhood and providing more affordable rental housing.
The seller, Summerview Square LLC, was represented by Will Suarez, Principal and Sean Cahill, Principal and Managing Director, who are based in the firm’s Fairfield/Westchester office. The property was introduced to the marketplace in late spring 2022, prior to the unprecedented spike in interest rates that began in early May and into the summer. The asking price was predicated on a 5.0% cap rate on in-place income, and 5.65% on a proforma basis.
“Summerview Square is a beautiful asset that checks all the boxes in terms of market fundamentals,” said Suarez. “The four-phase development was expertly crafted and has been impeccably maintained and managed, offering significant upside potential and modest capital expenditures.”
The first phase of Summerview Square construction at 4 Summer Street was completed in 2008 and had an immediate positive impact on the neighborhood. By the time the fourth, final and largest phase at 15 West Main Street was completed in 2014, most of the adjacent housing was upgraded. “Summerview Square will continue playing an important role in meeting the demand for housing in northern Norwalk,” said Cahill.
The amenity-rich community includes private garage parking below units and is centrally located and transit-accessible. Summerview Square is 100% leased and occupied by long-term tenants at-or-below market rents. Unit sizes range from one to three bedrooms, and from 750-sf to 1,500-sf.
“Will Suarez and his team at Avison Young ran a professional process that went smoothly, and we are very happy with the outcome. Job well done,” said Nick Segal of Summerview Square LLC.
The buyer is a partnership managed by Daniel and Joseph Scherban. Joseph Scherban commented, “Summerview Square is an exceptional asset with townhome units that offer residents a unique and differentiated luxury experience.” Daniel Scherban added, “We are excited to offer housing at an affordable price point relative to Stamford and Greenwich and look forward to watching the thriving Main Street area continue its renaissance.”
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