A five-building office complex located in Windsor, CT was sold on February 28, 2017 for $5,000,000. Investors Warranty of America LLC (IWA), an Iowa-based subsidiary of Aegon USA, sold the portfolio to Griffin Park Realty VV LLC with CBRE-New England facilitating the deal. The buyer is a Brooklyn, NY-based private equity partnership managed by Vasco Ventures.
The office building portfolio totals approximately 380,000 square-feet and is located within the 600-acre Griffin Office Center development. Historically, the award-winning suburban office park has attracted several institutional-quality tenants including Cigna, Great American Insurance, and the U.S. Postal Service. The portfolio, however, sold at $13.17 per square foot primarily due to a persistently high vacancy rate that had reached about 40.0% at the time of sale. Additionally, Vasco Ventures has noted that the buildings could use some updating in order to attract new, high-quality tenants. CoStar estimates a pro forma cap rate of approximately 10.0% once the updates are made.
CBRE/NE’s John McCormick, a broker involved in the deal, maintains a positive outlook on the transaction and status of the local office market.
“While on the market for an extended period, this transaction certainly highlights that our region can attract new investment capital,” stated McCormick. “We were ultimately able to secure a buyer that is committed to investing in the Greater Hartford market and to re-positioning this undervalued real estate.”
The specifics of the portfolio are as follows:
- 1 Waterside Crossing: A 3-story, Class A office building totaling 91,100 square feet.
- 2 Waterside Crossing: A 3-story, Class A office building totaling 86,800 square feet.
- 4, 6, & 8 Griffin Road North: Three 2-story Class B office buildings each totaling 67,242 square feet.
Source(s): CoStar, CBRE