Network One Realty completes first phase of three-property exchange

As one of the leading multifamily specialists in the region, Michael Battaglia of Network One Realty sees the demand for multifamily residential properties in the Western New York region. "As investment fundamentals and economics relative to financing and cash flow analysis become more prevalent, the appeal for 'value added' properties as opposed to stabilized investments may become more desirable, but can they be found at attractive pricing is the question?" With the completion of the first phase of a three property tax deferred exchange involving 232 units, Battaglia has closed on the Newell Heights garden apartments and the Autumn Terrace community. Both communities totaling 100 units will be converted by way of a deferred exchange into a third garden community located in the Hamburg area. That property is slated to close at the end of June next month. The 132-unit acquisition in Hamburg will complete the exchange process. Network One Realty represented all parties in the transaction, and both the sellers and the purchasers were local investors to the Western N.Y. market. "We know the multifamily sector in our region is healthy and will continue to be an attractive investment vehicle despite certain local, regional and national constraints that may be in-place or forth-coming. Our market in Western New York, in many respects does not mirror that of the rest of the country, and for that we are fortunate," said Battaglia. Relatively speaking, rental rates and property values in the area have been viewed as undervalued as compared to other regions around the country. Over the past several years there has been a tremendous increase in interest by outsiders from the West and East coasts for properties in Western N.Y.