SOUTH WINDSOR, CT Metropolitan Realty Associates (MRA) has acquired a 304,249 s/f industrial property at 456 Sullivan Ave., fully occupied by a transportation company, for $50 million. Clarion Partners, LLC provided equity for the venture through its Clarion Partners Real Estate Income Fund Inc. (CPREIF).
Newmark’s Matt Berres and Samer Khalil brokered the transaction. Newmark’s Dustin Stolly and Jordan Roeschlaub arranged the financing with a major institutional lender.
Originally constructed by SunCap Property Group in 2012 and expanded in 2015, the Class A property features 31.5 ft. clear ceiling heights, 42 by 48 ft. column spacing, 72 trailer spaces, 75 long-trailer spaces and 99 dock bays specifically designed for heavy distribution uses. The tenant has 10 years remaining on its initial lease with two, five-year options to extend its term at the distribution center where the company handles thousands of small-package ground deliveries every day throughout Connecticut and north to Massachusetts.
In the past few years, giants including Amazon and Honda have established distribution hubs in Windsor, while consumer-focused retailers including Walgreen, Wayfair, Coca-Cola, Home Depot, Aldi and others have opened warehouses catering to customer demand for next-day delivery.
Situated halfway between Boston and New York, 456 Sullivan Ave. is located within the I-91 Industrial Corridor offering connectivity to I-95 and I-84, providing access to Hartford (12 miles), Providence (68 miles), Boston (97 miles) and New York City (132 miles).
The logistics boom created 282,900 jobs in October, according to the Connecticut Department of Labor, and corporations continue to see value in the market’s talent, driving demand for logistics space.
“Central Connecticut is an established logistics market in the northeast providing direct access to Boston and New York City, two of the most dense markets on the eastern seaboard and we are excited about the long-term prospects of this property and the strength of the South Windsor/Hartford market,” said Farkas. “This was a unique opportunity to own a Class A asset in a supply-constrained area with a major national tenant.
“We are very pleased to acquire this asset with Clarion as our equity partner and look forward to expanding the relationship as MRA continues to focus its deal making around cash-flowing assets with strong in-place tenants in in-fill locations,” he added.
“The rise of ecommerce has made such locations a strategic investment opportunity,” said Clarion Partners co-head of national acquisitions Gary Rufrano. “We are delighted to establish a presence in the central Connecticut market with this high-quality, mission-critical facility occupied by a blue-chip tenant.”