Hot market tempts Prescott to pay $50m for homes.

Prescott Capital Management, LLC, the investment and asset management unit of The Prescott Group, LLC, announced the acquisition of three residential townhouse developments totaling 34 units located in Greenwich, Connecticut, for approximately $50 million.

Currently operated as rental units, the properties will be converted to condominiums to capitalize on the strength of the condominium market in Greenwich.

The portfolio includes Milbank Commons and Field Crest, consisting of 17 and 7 luxury townhomes respectively. The properties are located just blocks away from Greenwich Avenue, the town's signature street with an abundance of upscale retailers. Both are in walking distance of the Greenwich train station. The other property, Holly Hill, consists of 10 luxury townhomes located directly off West Putnam Avenue.

Daniel Steinberg, managing director at Prescott, said, "These newly constructed buildings are built to the highest standard. Given that they are already completed and are in excellent physical condition, the units can be marketed immediately and sold into an extremely strong and robust market. Our investment is enhanced by the fact that the acquisition does not have to account for construction and market timing risks.

"Further, Greenwich is one of the most affluent and desirable communities in the greater New York metropolitan region and the nation. It has an exceptional demographic profile that continues to draw affluent homebuyers from New York City because of its proximity transportation infrastructure, a lower cost of doing business locally, and substantial array of community amenities. Greenwich's commercial sector, specifically, has experienced significant growth in the past 10 years as executives choose alternative office locations close home. As this trend continues, housing demand should continue to rise."

Julianne Ward of Prudential Connecticut is the lead marketing agent.