Marcus & Millichap Arranges Sale of Meadow East to Stonehaven Residences in Potsdam, New York

Marcus & Millichap has arranged the sale of Meadow East, a 100-unit multifamily property in Potsdam, New York, with Stonehaven Residences acquiring the asset from Meadow East Associates LP in a value-add transaction that closed August 6, 2026.

Matthew Gault, Seth Glasser and Mike Fusco of Marcus & Millichap exclusively marketed the property on behalf of the seller and procured the buyer.

A Value-Add Play in a Tertiary Market

Meadow East was approximately 30% vacant at the time of sale, leaving roughly 30 of its 100 units unoccupied at closing. That vacancy level, combined with the property's age and condition, positioned the deal as a heavy-lift repositioning opportunity.

"Meadow East, a 100-unit community, was approximately 30% vacant at the time of sale, presenting an extensive value-add opportunity in a tertiary upstate New York market," said Matthew Gault, who operates out of Marcus & Millichap's Westchester office. "Our team expanded the buyer pool beyond the immediate market and identified an experienced upstate operator whose ownership of similar assets in comparable markets allowed him to get comfortable with the property's heavy-lift repositioning."

The transaction reflects a broader pattern in the current multifamily investment cycle, in which buyers are increasingly targeting value-add assets in tertiary markets where pricing discounts relative to peak values create room for repositioning returns. Stonehaven Residences, described as an experienced upstate operator, is stepping into a market where rents are modest but relatively stable, supported by the presence of two universities.

Property Details: 118 Leroy Street

Meadow East is located at 118 Leroy Street in Potsdam, New York 13676, on a 15.4-acre site in the foothills of the Adirondacks and the St. Lawrence Valley. The property was built in 1963 and contains 84,186 rentable square feet across a total building area of approximately 90,976 square feet.

The unit mix consists of 26 one-bedroom, 52 two-bedroom and 12 three-bedroom apartments. Asking rents at the property have been in the range of $1,050 to $1,075 per month for one-bedroom units and $1,145 to $1,185 per month for two-bedroom units, placing the community within workforce and student housing price points. The U.S. Department of Housing and Urban Development's Fair Market Rent for a two-bedroom unit in the area is approximately $1,579 per month, meaning Meadow East's current rents sit below that ceiling.

The property is situated near Clarkson University and SUNY Potsdam, close to the Raquette River, the Canadian border and US Route 11. It falls within the Potsdam Central School District.

Market Context: Upstate New York Multifamily

Potsdam is a small college town in St. Lawrence County, and Meadow East's proximity to two universities provides a relatively stable residential demand base. The asset's pricing reflects the dynamics of tertiary-market multifamily investing in 2026, where cap rates have expanded from peak-cycle levels and buyers with operational expertise in comparable markets are finding entry points that larger institutional players have largely bypassed.

New York multifamily cap rates for stabilized assets in major metros have been running around 6.09% in 2026, with prices remaining roughly 19% below their 2021 peak. Tertiary markets with elevated vacancy and heavy-lift profiles typically trade at a premium to those benchmarks, reflecting the additional operational and capital risk involved in repositioning.

About the Brokerage

Marcus & Millichap is a commercial real estate brokerage firm with offices throughout the United States and Canada. As of December 31, 2025, the company had 1,808 investment sales and financing professionals in more than 80 offices. The firm closed 8,818 transactions in 2025 with a total sales volume of approximately $50.9 billion.

Sources: Marcus & Millichap Press Release, September 8, 2026