Riverside Corners

Riverside Corners, Westport, CT

Location:Westport Submarket of Fairfield County, CT
Property Type:Retail/Residential
Square Footage:18,543 square feet, 7 retail tenants and 9 apartments
Date Acquired:October 2003
Purchase Price:$5,300,000 ($286 psf)
Strategy:Maintain high occupancy level for the retail by renewing tenants at higher market rents and seek to capture rising residential rental rates in supply constrained rental housing market.
Date Sold:October 2007
Sold For:$7,400,000 ($399 psf)
Total Investor IRR:In excess of 28%

Project:

Riverside Corners was purchased as part of a three asset portfolio (Liverpool Investors Portfolio) in October 2003. The property has a strong location in downtown Westport, Connecticut and sits on the water at a high visibility corner near the Main Street retail district of Westport. The property provided strong cash flows and a diverse tenant mix. Westport, CT is one of the gold coast towns in Fairfield County that is a bedroom community to many affluent individuals. The Main Street area is well known for its high-end retail shops and restaurants.

Investment Strategy:

The investment was considered a core property providing investors with annual returns in excess of 10%. The strategy was to renew or replace existing retail and apartment tenants over time at higher rents given the supply constrained nature of retail space in the Main Street area and lack of rental apartments in downtown Westport. Over time, Abbey Road Advisors upgraded several apartment units and the retail space to strengthen the current cash flow and create long-term appreciation. The company initially anticipated the term of the investment to be a 7 to 10-year hold.

Results:

As tenants were renewed or replaced at higher rents, the projected asset appreciation reached a level at which the decision was made to sell after only a four-year hold. In fact, the $7,400,000 sale price was the same price originally projected at the end of the 10-year holding period. The resulting sale has provided our investors with a complete return of their initial capital investment and a zero cost basis in the remaining two assets.