The Seaport Multifamily Brief
Issue #2 | March 2026
Coastal Connecticut & Southern Rhode Island
Powered by CoStar Data and Seaport Due Diligence
Primary market statistics sourced from CoStar Search Analytics (March 2026 reports). Interpretation and underwriting commentary are proprietary to Seaport Commercial.
Executive Summary
Coastal multifamily fundamentals remain tight, but the market is becoming more selective. Vacancy stays relatively low across the region, rent growth varies by county, and cap rates appear to be stabilizing. In this environment, our view remains simple: Do the Math—and let the math tell you what to do.
Featured Listing Spotlight is included below and uses county-level CoStar benchmarks for context. Property-specific performance can vary materially depending on rent roll, expense structure, and commercial lease terms.
Table of Contents
- Featured Listing Spotlight: Mystic, CT (Do the Math)
- Regional Snapshot: Key Metrics by County
- Interpretation: What the Data Suggests
- The Seaport Signal™
Featured Listing Spotlight: Mystic, CT (New London County)
One of the most closely watched properties currently on the market in Southeastern Connecticut is Factory Square at 12 Water Street in Mystic, Connecticut. The mixed-use property contains approximately 60,143 square feet on 1.16 acres, including 43 residential units and 6 commercial spaces, and is currently being marketed as a redevelopment opportunity. The property last sold on November 2, 2023 for $14,000,000, a transaction where Seaport Commercial represented both the buyer and seller, setting the highest sale price in Mystic historyat the time. Now, less than three years later, Factory Square has returned to the market with an asking price of $20,000,000, offering investors a rare opportunity to analyze the numbers, evaluate repositioning potential, and ultimately do the math and let the math guide the investment decision. This property is being offered by Berkshire Hathaway Home Services.
Do the Math: What does $20,000,000 require?
- Price increase vs. 11/2/2023 sale:+$6,000,000 (+42.9%)
- Price per “door” (43 residential + 6 commercial = 49 total):~$408,000 per unit
- Price per residential unit (43 residential units only):~$465,000 per residential unit
- Price per SF (60,143 SF):~$333 per SF
Here’s the underwriting reality check: New London County’s market cap rate is ~6.4%and market rent is ~$1,743 per unit(CoStar Key Metrics). At a 6.4% cap rate, a $20,000,000valuation implies roughly $1,280,000in stabilized NOI.
Note: The figures above are illustrative and based on county-level CoStar benchmarks—not the subject property’s actual rent roll or operating statement. Mixed-use performance can vary materially based on commercial lease terms, downtime, tenant improvements, leasing commissions, and repositioning scope.
Regional Snapshot: Key Metrics by County
Source: CoStar Search Analytics Key Metrics (March 2026).
Interpretation: What the Data Suggests
- Supply is not uniform.Newport shows meaningful units under construction relative to the other counties, while Middlesex and Washington show little to none.
- Vacancy ranges matter.Washington is extremely tight at the county level, while Middlesex runs higher—suggesting more sensitivity to tenant affordability and leasing velocity.
- Cap rates are clustering.Across these four counties, cap rates sit in a relatively narrow band, reinforcing that buyers are paying for stability—but underwriting has to be precise.
The Seaport Signal™
The best coastal deals in 2026 won’t be won by optimism—they’ll be won by discipline. If a property is marketed as “value-add” or “redevelopment,” the only question that matters is:
What income does the price require—and how, exactly, do we get there?
If you want us to run the math on a target asset (rent roll stress test, expense bands, cap-rate sensitivity, and redevelopment assumptions), we can build a clean underwriting snapshot and let the numbers speak.
Investors and property owners interested in analyzing similar opportunities in Mystic, New London County, and the coastal Connecticut and Rhode Island multifamily marketscan explore additional insights in The Seaport Multifamily Briefat www.seaportre.com/blog .
Market data in this report is sourced from CoStar Search Analytics(March 2026 editions). Interpretation, underwriting analysis, and Seaport Signal™ commentary are proprietary to Seaport Commercial.
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