Frosted Bridge Investments

The value proposition here is an appealing new Hamptons-quality portfolio of multifamily investment communities that will elevate and stabilize any real estate asset class for the long term. The builder has taken quality and low maintenance to an art form.

The ROI, both short and long term will benefit from having a minimal capital reserve requirement and significantly reduced maintenance costs. The quality of the communities is exceptional; thus, the quality of the tenancy is and will be superior as well.

The portfolio of properties is an institutional grade offering of new luxury-grade multifamily investment properties built in the path of growth in the Newburgh and Beacon area. 206 units are brand new, and 263 are 3 years old. This is not the ground floor for expansion in this area; it has been steadily driven by job growth in Westchester and the Interstate 684 corridor.

Recently the demand has stepped up further from the NYC-employed, many of whom find the commute to the city more palatable for the 2 or 3 days that they need to make it, as the work from home trend becomes the new reality. Even people who work exclusively from home are attracted to this Hudson River town environment that remains accessible to the city.

There is also consistent demand for high quality housing from the faculty and staff of the 4,300-student West Point Military Academy.

Another simple reason for the strong demand is that this portfolio provides luxury housing for an appealing 25% of the average income of married couples in their areas.

This growth in population and income has spurred a demand for commercial, personal and professional services, producing a virtuous cycle of expansion and further demand for quality housing.

The picturesque old Newburgh-Beacon centers have been restored, the gentrification and expansion continues at a strong pace. Franchises have been noticing and moving in.

Local residents get to enjoy the cultural and nature-oriented amenities and activities that people flock to in the Hudson River towns.

The first five properties and administration building are within a 29-mile radius, which presents the opportunity to share some management and maintenance resources. The sixth property is further afield in Sandy Hook, CT.

The buildings are uniformly of the highest quality, designed for low maintenance, a luxury environment, and durability, from the mechanicals to the fixtures, accessories, cabinets, appliances, counters, and more. Maintenance will remain low and capital improvements should be nominal, since all is new and of highest quality, so the profit margin will age well.