Greenwich-based Antares Investment Partners announced yesterday the acquisition of two residential properties for $223 million, believed to be the largest real estate acquisition in Connecticut history.

The company said it plans a luxury condominium conversion for the two properties – the 266-unit Putnam Green I-III located at the juncture of Post Road and Western Junior Highway in Greenwich and the 130-unit Weaver’s Hill located off Weaver Street in the Glenville section of Greenwich. Prices will range from about $600,000 for a one-bedroom apartment, to as much as $2.4 million for a four-bedroom triplex, affordable by Greenwich standards.

With a population of about 65,000 and restrictions on new development, supply in Greenwich is extremely limited. “The situation is dire,” a managing partner at the purchasing company, Antares, Joseph Beninati, said.

But demand continues to grow strongly. “Historically it’s been one of the most sought-after addresses,” Mr. Beninati said. “It has an unbelievably low tax rate, some of the best schools in the state, and amazing cultural offerings. And Greenwich Avenue shopping is quickly becoming the Rodeo Drive of Fairfield County,” he said.

Fueling demand in recent years has also been the burgeoning hedge fund industry. It is estimated that around 12% to 15% of the world’s global hedge fund assets are managed in Greenwich. That has led firms such as UBS and the Royal Bank of Scotland to establish headquarters nearby.

“The hedge funds bring the investment banks, the investment banks bring the wealth firms, the wealth firms bring the accounting firms – it’s become like another Wall Street,” Mr. Beninati said.

Not surprisingly, then, interest in the new condos is expected to be strong. “Demand will be vigorous,” the founder and CEO of Greenwich Fine Properties, Doug Stevens, said. “These are entry-level condos for the Greenwich market and as such they represent a very attractive product for first-time homebuyers seeking an affordable entry option.” Mr. Stevens’s brokerage firm will handle the condo sales for Antares.

He said that while roughly 50% of annual sales in Greenwich are to people who already live in the area, the new Antares development should attract a significant number of New York City residents – young families, singles, newly married couples, and young professionals – looking to purchase their first property in Connecticut.

To entice the new buyers, Antares will invest more than $125 million to fully restore the two properties over the next two years.

The development will include onsite amenities such as health clubs, swimming pools, and tennis courts. The restoration also includes upgrades to the exterior facade, as well as extensive interior renovations, including new kitchens, bathrooms, hardwood flooring, and doors.

The properties were previously owned by a partnership of eight, represented by various owner affiliates of Mill Management. The group’s decision to sell was the result of favorable market conditions and various estate planning and partnership issues, a managing partner, Steve Schacter, said.

Despite the size of the deal, the price paid by Antares was not the best offer Mr. Schacter received, he said. He said he received higher bids but favored Antares because they are based locally. “We felt that they would treat the residents and our personnel in a different way to an institutional owner,” he said.

But he said that while he’s very happy with the price, selling the property was “bittersweet.”