The 110,000 square foot office building located at 75 Holly Hill Lane in Greenwich, Connecticut sold on July 7, 2017 for $33,750,000. The seller and buyer in the transaction are ClearRock Properties and Benedict Realty Group, respectively. Both companies are New York-based real estate investment, advisement and management firms. The office building sold on a $306.82 per square foot basis and reportedly at a 6.0% capitalization rate.
The sale marks a major turnaround of a property that was hit particularly hard during the recessionary period, originally purchased in 2012 by the sellers for approximately $19,300,000. By the time of the 2012 sale, the property had been foreclosed on and was about 20% leased. ClearRock Properties then partnered with Artemis Real Estate to purchase the property, and immediately set out to make substantial improvements and interior renovations to the three-story structure. Specifically, a $6,000,000 capital improvement program and comprehensive marketing campaign was implemented to update the building and attract prospective tenants.
The buyer, Benedict Realty Group, plans to continue operating the financial/professional office building but is also suggesting a shift in emphasis towards medical-related usage. Coincidentally, the sale comes off the heels of a separate $60,000,000 portoflio acquisition by BRG of medical offices throughout Rhode Island. In a statment regarding the transactions, BRG principal Daniel Benedict said,
“BRG will continue to expand its medical office portfolio along the East Coast in the upcoming years…We will be purchasing on-campus medical office buildings, as well as medical buildings located in strategic locations close to hospitals and attractive target customer bases”
Expansion is certain, as the Greenwich Planning & Zoning Board has already approved plans to further renovate portions of the building and parking lots to allow growth of the building’s primary medical tenant, Stamford Health.