188 Cherry St, Milford, CT 06460

188 Cherry Street is an 18-unit mixed-use property in Milford, Connecticut, completed in 2021. The property includes 8,380 SF of residential rentable area (18 studios), 3,021 SF of office, 1,737 SF of warehouse, and 34 surface parking spaces on 0.67 acres.

Residential units feature quartz countertops, stainless steel appliances, in-unit washer/dryers, elevator access, 9-foot ceilings, gypcrete subfloors, mini-split central air, and modern finishes throughout. Current average residential rents of $1,966 per month are $150 to $350 below comparable product in the immediate market. The pricing gap is a function of the current owner operating several similar buildings in Milford and stratifying rents across his portfolio. A new owner will not have this constraint. Historical occupancy has run 95-98% since stabilization.

The commercial component is fully occupied. Zurita Insurance is leased through 2032 at $23.24 per square foot against a market of roughly $30 per square foot. Smith Construction is leased through 2031 at $12 per square foot.

The property is currently managed as part of a vertically integrated, institutional-scale platform with full leasing, maintenance, and administrative payroll allocated across approximately 500 units. That cost structure is materially above what a private operator would carry for an 18-unit building. Total operating expenses are projected to decline by over $33,000 under practical ownership.

Milford recently completed a citywide revaluation in which most properties saw assessed values increase 30-40%. The assessment on 188 Cherry came in essentially flat. The city has voted to phase in the new values, and the mill rate will decline accordingly. Property taxes at 188 Cherry are expected to decrease over the hold period.

The investment thesis is straightforward: four value drivers, all working in the same direction, none requiring additional capital. Residential rents roll to market. Commercial rents mark to market over time. Expenses normalize under private ownership. Taxes decline through the revaluation phase-in.