Joint venture acquires 186,603 s/f single-tenant industrial asset

Windsor, CT A joint venture comprising Regal Ventures, Snowball Developments and Devli Real Estate has acquired a 186,603 s/f, single-tenant industrial asset located at 600 Day Hill Rd. All three partners are based in the New York City area.

The site is fully leased by the Spencer division of Howden USA Companies, a wholly-owned subsidiary of Chart Industries. The tenant, known as the Spencer Turbine Company, manufactures heavy-duty, engineered air and gas handling equipment. The company has occupied the facility since the mid-1970s and holds a lease running through November 2034.

“We are delighted to partner with Snowball Development and Devli Real Estate on our first industrial acquisition in the Greater Hartford market,” said Sean Dainese, managing partner of Regal Ventures, which is managing the investment. “The long-term committed tenant, attractive cash yield, and the optionality to explore multiple value-creation strategies make this an ideal addition to our growing industrial portfolio.”

Neither the sale price nor the seller was disclosed. Spencer Hoffman, an attorney with Kingston, NY-based Beacon Law, served as counsel representing the buyer.

“Snowball Developments is excited to partner with Regal Ventures and Devli Real Estate on our second acquisition in the City of Windsor and our fifteenth to date in the Connecticut industrial market,” said Brian Ker, president of Snowball Developments. “Snowball has always been a ‘land-first’ industrial owner, and the spacious, 30-acre site at the corner location of Marshall Phelps and Day Hill Rd. offers incredible long-term potential while the asset is currently supported by strong and growing cash flow.” 

“The acquisition of 600 Day Hill Road fits squarely within our strategy of acquiring mission-critical, low-coverage industrial assets with long-term, credit-worthy tenants in supply-constrained corridors,” said Mark Devli, chief investment officer of Devli Real Estate. “We are thrilled to partner with Regal Ventures and Snowball Developments on a deal that underscores our confidence in both this asset and the Greater Hartford market.” 

Constructed in 1975 and featuring a rear-load configuration, the building has undergone significant infrastructure Improvements by the tenant to support specialized manufacturing and testing operations. 

The Windsor location benefits from proximity to Bradley International Airport -- Amazon’s air freight hub in New England -- and is located in a high-barrier submarket with limited new supply and sustained tenant demand.  Situated at the nexus of Northeast distribution channels, the property sits on a 29.7-acre parcel.  

The transaction represents Regal Ventures’s third industrial acquisition since May of this year. That month, Regal Ventures acquired an 85,053 s/f industrial building in Easton, PA in partnership with Benchmark Real Estate of Lancaster, PA. And in July, the company acquired 7600 Whitepine Rd., a 70,739 s/f industrial manufacturing facility in Richmond, VA.