Southend Upswing

The sale of apartment buildings containing 30 units in Stamford’s south end for $5.25 million is an indication that property values there are on the upswing.
Sold as a package, the 30 units cover four properties along Pulaski, Atlantic and Garden streets.

The area is bordered by Stamford Harbor where former industrial land has been transformed into upscale residential buildings, as well as office buildings and retail uses at Building and Land Technology’s Harbor Point project.

Building and Land Technology’s 80-acre development generally has had a positive impact on nearby property values, said Roger Ludwig, senior managing director of Pyramid Realty Group.  “It depends on what neighborhood,” he said. “It’s case by case.”
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Industrial properties in the neighborhood also are benefiting, Ludwig said, due to an increasing scarcity.
But the office market across Stamford, including those in Harbor Point, appears to have reached its nadir and appears to be holding steady, despite the announced departure of UBS in 2017, according to Ludwig.
The vacancy rate in the city is 20 percent.
“It’s my opinion that the market has already adjusted to the exit of UBS with a negligible effect on an already depressed office market,” he said.

But apartment complex developers might be facing future challenges, Ludwig said, noting that federal regulators are tightening lending standards on apartment development.

“They feel an impending bubble is in the making,” he said. “This will have a far broader effect on the south end than the loss of UBS.”

Pyramid Realty Group can be reached at 203-348-8566.