CHESHIRE, CT = Investcorp has retained Cushman & Wakefield to market a 527,000-square-foot mixed-use warehouse/office property at 181 W. Johnson Avenue in Cheshire for sale. The multi-tenant facility, anchored by Macy’s regional internet fulfillment center, sits at the intersection of interstates 691 and 84 – in the heart of the desirable central Connecticut industrial market.
Currently 75 percent leased to three tenants, also including YRC Inc. (Roadway Express) and Alexion Pharmaceuticals, Inc., 181 W. Johnson Avenue features 74,500 square feet of cross dock space and 64,000 square feet of office accommodations. It can accommodate a 380,000-square-foot expansion as well.
“This asset is an ideal logistics facility and one of the larger industrial properties on the market in Connecticut,” noted Cushman & Wakefield’s Sean Duffy, who is based in the commercial real estate services firm’s Hartford, Conn., office. He is heading the assignment with Andrew Merin of the company’s Metropolitan Area Capital Markets Group in East Rutherford, N.J., and Matthew Pullen from its Boston office.
According to Duffy, the offering’s highlights include the opportunity to enhance value by repositioning and leasing up the property’s 130,000 square feet of available space, making it an ideal investment for entrepreneurial owners seeking stable income with upside potential. He added that 181 W. Johnson Avenue’s location at Connecticut’s geographic center, along the affluent and densely populated New York-to-Boston Corridor, provides access to the entire New York Metropolitan region, as well as all of New England and Eastern Canada. Users can reach one third of the North American population within a one-day drive.
“The distribution sector is playing an increasingly important role in the Connecticut economy, as ecommerce and the demand for next-day and same-day delivery drive users toward large population centers,” Duffy said. “And in a market with limited large blocks of modern industrial product and high barriers to entry, 181 W. Johnson Avenue is positioned to compete for tenants on both a local and regional level.”
Duffy added that the central Connecticut industrial market’s strong performance in 2014 – highlighted by six new leases greater than 100,000 square feet – and a virtual lack of new construction are fueling a supply/demand imbalance. At the same time, the recent delivery of Amazon’s 1.5 million-square-foot warehouse in nearby Windsor illustrates the region’s growing desirability.
Originally built as a single-tenant property for the corporate headquarters and distribution operation of Bob’s Stores, 181 W. Johnson Avenue provides highly functional space. It offers 134 loading positions, ample car parking and trailer storage, with clear heights up to 46 feet.