KS Partners LLC completed the acquisition of a 620,372 s/f property portfolio. The $65 million, eight-building site, located in Corporate Ridge Office Park, brings KS Partners roster of properties owned to more than 2.8 million s/f. The acquisition is the largest in the history of the company.
"This is a very significant acquisition for KS Partners and allows us to establish a strong presence in Connecticut and own some of the best assets in the Greater Hartford market," said Kambiz Shahbazi, founder and president of KS Ptrs.
KS Ptrs. made this acquisition in a joint venture with a New York-based, multi-billion dollar multi-strategy investment firm. Sally Michael, a partner at Saul Ewing LLP, served as KS Partners' attorney for the purchase, while Mike Marcone of Marcone Capital arranged financing, which was provided by Barclays Capital of New York.
KS Ptrs. purchased the eight-building portfolio of suburban office properties from New Boston Fund. KS Ptrs. has a track record of transacting with New Boston Fund, having purchased more than eight buildings from the New Boston Fund over the past 10 years. The newly acquired portfolio, which was purchased on an off-market basis, was part of New Boston's Fund V. All eight properties are located in the Corporate Ridge Office Park.
The multi-tenant properties are among the highest quality assets in the Greater Hartford submarket and historically have been strong income performers, Shahbazi said. The properties have benefitted from a recent "flight to quality" trend and a stable market dominated by a large corporate tenant base with steady growth, including insurance companies, engineering firms, health care providers and telecommunications firms.
"A significant pricing inefficiency currently exists for suburban office properties and interest rates are at historic lows, making this an opportune time to buy," Shahbazi said. "This off-market opportunity to acquire a portfolio of prominent properties at well below replacement cost will allow KS Partners to realize strong current returns on its investment while having the potential for substantial long-term value appreciation."
KS Partners LLC is a commercial real estate owner and property management company that owns and manages income-producing real estate assets in the Northeast. KS Partners, which has offices in Woburn, Mass., and New York, strives for value appreciation through the capitalization of improved leasing, repositioning or redevelopment opportunities. For more information, please visit www.kspartnersllc.com.