westbrooke acquires groton townhouse apartments in partnership with rowin capital

Westbrooke Alternative Asset Management is pleased to announce the successful acquisition of the Groton Townhouse Apartments, a 141-unit multifamily property in Groton, Connecticut alongside partner, Rowin Capital and its affiliate Penlane Capital.

The transaction capitalises on the accelerated U.S. defence spending under the Trump Administration, particularly benefiting from the ongoing expansion of General Dynamics Electric Boat Company, the primary supplier of nuclear submarines to the U.S. Navy. Located minutes from Electric Boat’s Groton facility, the property addresses a significant housing shortage driven by job growth in the area.

Westbrooke funded the majority of the equity with Rowin contributing and raising a significant portion in order to achieve strong alignment. The deal is well capitalised at approximately $25.4m, with a portion of equity raised specifically for enhancing the property.

The business plan involves active management to drive net operating income while delivering quality townhouse living to residents at an affordable rent. Westbrooke and Rowin are targeting a mid-teen IRR coupled with strong cashflow throughout the hold period.

Debt was secured from Fannie Mae at a fixed rate of about 5.4% p.a. with three years interest-only.

Dino Zuccollo, Head of Investor Solutions at Westbrooke, commented: “This co-investment provides our clients with unique access to a high-conviction U.S. real estate opportunity that combines capital preservation, attractive yields, and a tax-efficient investment structure. Westbrooke has a strong track record in the U.S. real estate market and on the back of this we are looking forward to launching our second multifamily investment Fund later this year.”

Jonathan Loeb, Head of Westbrooke USA Real Estate, added: “Groton’s supply-constrained market, underpinned by long-term US Navy contracts extending beyond 2043, provides a strong foundation for this asset. Our planned enhancements will reposition the property , capitalising on its desirable townhouse configuration, spacious feel and exceptional proximity to major employers like Electric Boat.”

Joe Scherban and Daniel Scherban, Managing Directors at Rowin Capital said: “We are excited to embark on our first partnership with Westbrooke on this attractive opportunity. Westbrooke’s strategic expertise and aligned investment philosophy provide the foundation for a strong and effective collaboration”