K5 Equities Scoops Up Pair of Stamford Multifamily Buildings

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K5 Equities added two Stamford apartment complexes to its portfolio in a $57.2 million deal.

The White Plains-based private equity real estate firm acquired Daycroft Apartments and Hamilton Gardens from Brooklyn’s Hamilton Daycroft LLC, according to Westfair Communications. The firm paid $33.2 million for Daycroft and $24 million for Hamilton Gardens, both of which were appraised last year below the sale prices.

The deal for the combined properties breaks down to $304,000 per unit.

The seller behind the shell company is Ahron Rudich, principal of Empire Realty USA, according to the Hartford Business Journal. Rudich faced pressure from residents to improve conditions at another Connecticut community he allegedly neglected, according to CT Insider reporting from last year.

Daycroft, at 44-150 Blachley Road, spans eight buildings with 108 units across 104,000 square feet. Hamilton Gardens, at 333 Hamilton Avenue, includes four buildings with 80 units and 77,000 square feet. The properties were appraised at $23.7 million and $18.4 million, respectively, last year.

K5 is led by Steve Kessner and his son Michael. The elder Kessner, a Bronx native, bought his first building in Manhattan in 1980 and amassed a 48-building portfolio he sold for $225 million in 2007. The firm has acquired nearly $400 million worth of commercial real estate assets in the New York metro, with a focus on value-add and repositioning strategies. The Stamford acquisitions fit that model, though K5 has not yet disclosed any plans for upgrades or redevelopment.

The deal adds 188 units to the firm’s holdings and marks a continued push into suburban multifamily properties within its geographic footprint.

Rents have been soaring in Stamford and vacancy rates have remained below the national average. At the halfway point of the year, rents had increased for eight consecutive months in the city, according to CoStar.

— Holden Walter-Warner