New Haven County Market Overview

March 2012

Presented by:

Steven K. Inglese, SIOR

Brokers of Investment Properties & Development Sites

www.TheNewHavenGroup.com203-773-3060

Introduction

2011 – The lost year! Is 2012 the year of the big thaw?

The news of the year

2011 and 2012 market transactions

Where do we go from here?

The News of the Year

High Tech Manufacturing

Yale New Haven Hospital and St. Raphael’s to Merge

Quinnipiac Expands Graduate CampusNew Medical School2,000 new graduate students to North Haven

Yale’s Endowment back over $20 billion

2011 Transactions

0

10

20

30

40

50

2011 2010 2009 2008 2007

Office

Industrial

Apartments

Annual Sale Transactions

Per Conn-Comp

Apartment Sale Transactions

Sunset Ridge, New Haven 312 units – affordable

housing Sold for $45k/unit - $14MM Belfonti Associates

purchased from Winn Residential

Meeting House –Meriden

296 units + 13k sf retail $53k/unit - $16.25 mm 7.6% going in cap rate 1 & 2 Bd and Town houses Solomon Organization, buyer

Value Added Apartment SalesTrolley Crossing – East Haven 214 units 126 efficiencies and 88 -1

Bedrooms Sold for $45k - $9.6 mm 7% going in cap rate Beachwold Residential buyer

492 Fountain – New Haven 72 units (1 and 2 beds) $59k/unit $4.25MM Pike International buyer

9 Dixwell Ave, New Haven 21 units + Ground

Floor Retail, mostly studios

$1,900,000 - $86k/unit

Redevelopment Play for Yale Univ.

Apartments –New Haven County

City of New Haven Apt Vacancy lowest in

Country at 1.9% --National average 5.6%

City Class A rents range from $1.75 to

$2.77/sf

Suburban Class A rents from $1.25 to

$1.90/sf

360 State St – New 500 unit Complex90% Occupied in 14 months

Office to Apartment Conversion

Downtown Milford – 1 New Haven Ave Former office building Purchased for

Apartment mixed use redevelopment

Close to Metro North REO asset Bob Smith - developer

Notable Retail Sales

Fedex Kinkos, Starbucks, Pizza Hut

$7.05 MM ($286/sf) – 8% cap / 9% equity return

26,000 sf- built ‘07 Loan Assumption $5.1m

Washington Trust

170,000 s/f , multi tenants

$13.7 mm ($81/sf) 7.3% going in Cap

Silver Commons, Meriden 500 Derby Ave - Derby

Office Sales

25,000 s/f office $2.2 mm ($88/sf) or

$62k per apt unit.

$1.5 MM ($63/sf)

432 Washington Ave, North Haven

Easter Seals Purchases

1 New Haven Avenue – Milford

Apartment Redevelopment

Wellpath Buys E. Main St Waterbury

$2.2 MM - $77/sfUser

Medical Office Sales

2560 Dixwell Ave., Hamden21,000 s/f medical building$6,855,000 ($316/sf)Built in 2007

6 Devine Street, North Haven115,000 s/f OfficeYale New Haven Hospital to purchase from AT&T for Outpatient and Admin.

2011 Office Lease Deals

Leases 28,000 s/f -- $21/sf 10 yr

Occupies 1st phase of 80,000 sf of 217,000 s/f lease

Community Health Network Leases 23,000 sf - $9/sf range

At 4 Fairfield Blvd, Wallingford

Campus At GreenhillWallingford

4 Fairfield Blvd

2011 Office Lease Deals

IPP – 24,000 sf538 Preston Ave , Meriden$18.50/sf $ - 40/sf T.I. – 10 yr

VNA – 10,000 sfOne Hamden Center$19.50/sf - $40/sf T.I. – 10 yr

Alliant Insurance Services – 15,000 sf55 Realty Drive, CheshireMoves from Waterbury

Industrial Sales

65,000 s/f $34/sf - $2.2MM Sold to United Concrete (owner user)

386,000 s/f $9/sf - $3.9 MM Former Printing facility Speculative purchase

297 State St, North Haven

69 North Plains Highway,Wallingford

Industrial Sales

75,000 s/f $2.5 MM ($33/sf) Aurora Products (owner

user)

205 Edison Rd Orange

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/f780 North Colony RdWallingford $3.50/sf NNN

CF Paper – 80,000 s/f351 Morgan LaneWest Haven $3.75/sf NNN

2011-12 Manufacturer Leases

LQ Group – 12,000 s/f33 Business Park DriveBranford $6.50/sf NNN

Forum Plastics – 34,000 s/f105 Progress LaneWaterbury $3.65/sf NNN

Where’s The Market Going? 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 Access to transit Entertainment and cultural Housing

Start Up Companies in New Haven

Higher One Grey Wall Software Continuity Control Prometheus Research SeeClickFix YouRenew Optherion Independent Software PaperG Spot on Networks Retail Optimization Historx GSM Nation

Start Up Opportunities

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

140,000 s/f office for Higher One

200 Market Rate apartments, with 20% affordable

Before View

Downtown Crossing – 400,000 sf Bio tech Building Planned

In Closing

Healthcare and Education continuing to lead the charge

Strengthening Manufacturing sector

Apartment Market remains solid

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.TheNewHavenGroup.com

203-773-3060