By Eric Peterson
PISCATAWAY, NJ -The Morristown-based Hampshire Funds, an aggressive buyer of properties in the tri-state market this year, has added still more to its holdings, picking up a seven-building portfolio here. Hampshire has acquired the 386,043-sf portfolio of office/warehouse buildings for $30.2 million, which factors out to a little over $78 per sf.
The seller was the Syosset, NY-based Blumenfeld Development Group, which could not be reached for comment. Hampshire bought the assets on behalf of one of the company's affiliated funds. The transaction was arranged by CBRE/Melody and Jaime Weiss Realty Co.
"These properties provide a stable income stream from several credit tenants, and were purchased at below replacement costs," says James Gunning, senior director of CBRE/Melody's Saddle Brook office. His company is the real estate investment banking arm of CB Richard Ellis. Hampshire also recognized the potential to increase the cash flow by leasing approximately 87,500 sf of vacant space formerly occupied by Lucent Technology, Gunning adds.
"They also have ability to build additional space on several building sites that permit expansion," says Jaime Weiss of the Moonachie-base Jaime Weiss Realty, who co-worked the deal with CBRE/Melody on behalf of Hampshire. "There is a tremendous upside, and Hampshire is suited to manage a project of this magnitude."
Built between 1971 and 1977, the seven buildings are lined up adjacent to each other along Kingsbridge Road and Centennial Avenue here, occupying a total of 38 acres. Current tenants include British Petroleum, Cablevision, Enzon Pharmaceuticals, Hanover Insurance, Iron Management and Rutgers University. The sale also represents all but one of Blumenfeld's eight-building office/warehouse properties in the Garden State.
Available space within the portfolio had been listed by Blumenfeld on its website in a range of $12 per sf net for the building at 140 Centennial Ave., to $18.50 per sf net for the building at 80 Knightsbridge Rd.