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Apartment Market: Eyes Wide Open
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Business New Haven
10/16/2000
By: BNH
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Eileen Swenson is founder and president of Accord Properties, a real-estate management and investment firm specializing in turnaround properties. Based in Wallingford, Accord is one of the largest property-management companies in Connecticut. Bringing multi-family housing communities from distress to desirable, the company has identified a specific niche in the turnaround multifamily market.
What exactly does 'turnaround' mean?
To turn a property around means taking properties in distress and repositioning them into well-managed, viable investments. 'Distress' could mean one or more things - foreclosure or bankruptcy, the property could have been poorly managed and poorly maintained or could have been under financial strain due to being over-leveraged. We go in and analyze the market, put together a rehabilitation plan, hire appropriate staff and put the plan into motion.
Can you give give us examples of the type of work you do?
In the past two and a half years we have rehabilitated over 3,500 apartment units in Connecticut, doing physical rehabilitation including new roofs, new HVAC systems, parking-lot improvements, lighting upgrades, improved curb appeal, and most importantly, interior apartment upgrades.
Who is your market?
In most cases we're finding the majority are young professionals relocating into Connecticut for new jobs. There is somewhat of a trend with the baby-boomer generation considering urban living, at least part-time, to take advantage of the entertainment, the arts and just the whole feel of city living.
Is the apartment market healthy at the moment?
Very healthy in the Northeast. The overall occupancy rate as of June 1 was 97.5 percent.
What will happen to the apartment market in the city if the economy doesn't remain as healthy as it is now?
The unemployment rate impacts all aspects of the economy, including the apartment market. Investors will not be able to increase rents as dramatically as they do in a strong economy. However, I would anticipate that occupancy will remain strong over the next few years.
What is the availability of apartments in New Haven, for example, for young people?
Yale students, for example, occupy the Taft Apartments, the Liberty Building across from the Omni Hotel and any other affordable housing that is available. Well located and well maintained properties throughout the city are experiencing fairly dramatic rental increases and very high occupancy. Moderate and lower-priced housing is becoming harder and harder to find in the central business district.
What is the status of the Strouse-Adler building on Olive Street in New Haven?
Ansonia Acquisitions is working on obtaining title. In the meantime they are working with local architects and exploring their options for the use of the building. They are considering a conversion to residential use.
What is y our feeling about the market in the near future?
I feel that there are lots of opportunities for growth in the market for the next year. I would proceed with some caution beyond that point. Having lived through the tough real estate times of the late 1980s and early 1990s, my advice would be to go forward with our eyes opened.
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