Hartford Business Journal

8 HARTFORDBUSINESS.COM | MARCH 24, 2025 DE AL WATCH DE AL WATCH | BUYERS & SELLERS $1.75 million in improvements to a 112,000-square-foot South Windsor warehouse, at 555 Nutmeg Road North. Snowball paid $9 million for the 12-acre property in early 2023. There, Ker plans to renovate loading access and expand parking and outdoor storage areas to accom- modate the building's current tenant — tire and auto products distributor U.S. AutoForce. The company's lease expires next January, but Ker has expressed confidence U.S. AutoForce will renew. In Danbury, Snowball is seeking permission to pave about 2.5 acres of excess land for trailer parking and outdoor storage. "It's not a huge lift to improve the property this way," Ker said. "A big part of the industrial storage market today is for outdoor uses and parking." Steady demand Nicholas Morizio, president of real estate services firm Colliers in Hart- ford and New Haven, said Snowball has been paying prices that seemed "a little high," but strong demand has kept the inventory of available logis- tics space and overall vacancy rates low, boosting property values. Morizio said he doesn't expect that to change until there is a major shift in the broader economy. Despite this dynamic, banks remain reluctant to finance speculative logistics development in central Connecticut, as opposed to neigh- boring Massachusetts and New York, he said. As of early March, Morizio had two companies searching for 80,000- to 100,000-square-foot buildings to buy, with few options available. "It's very difficult for owner-users to find something," Morizio said. According to a 2024 market analysis by real estate services firm Newmark, the Connecticut and western Massachu- setts market ended last year with a 6.6% vacancy rate, up from 5.4% a year earlier, but well below the historical 8% average. Average asking rents at the close of 2024 hit $7.27-per-square-foot, up 3% year-over-year, with New Haven County at the peak, with average asking rents of $8.57-per-square- foot, according to Newmark, whose analysis excludes Fairfield County. The market saw 800,000 square feet of absorption, due mainly to gains in the Greater Hartford area. Newmark Executive Managing Director Art Ross, whose company represents two Snowball proper- ties, said current trends match well with Ker's strategy. Last year saw "decent" price appreciation and absorption, especially compared to the Greater Boston and Hudson Valley regions, he said. As of early March, there had not been any major layoffs regionally, Ross noted. And industrial real estate demand remains relatively strong in central Connecticut, which has little available space and is still a bargain compared to nearby markets, Ross said. "There is rent growth," Ross said. "They (Snowball) see that, and they are taking advantage of it." Landlord eyes converting part of Simsbury shopping center into apartments T he owner of a major Simsbury shopping plaza impacted by recent tenant depar- tures is eyeing a plan to convert part of the property into apartments. The Simsbury Commons, at 498-530 Bushy Hill Road, is a 256,804-square-foot retail plaza set on 26.97 acres and anchored by Stop & Shop. It includes two main retail buildings and a number of outparcel properties. Other tenants include Apple Cinemas, a Dill Dinkers pickleball facility, Walgreens and a tram- poline park, among others. The property's owner, Northpath Investments, has submitted a preliminary plan to partially redevelop the main building on-site into a four- story, 325,225-square-foot apartment complex with 300 units. The apartments would be erected behind the existing Apple Cinemas, at 530 Bushy Hill Road, according to a site plan. Northpath said its Simsbury Commons prop- erty, which it purchased in 2019 for $41.85 million, "is challenged by regional and national market conditions." It recently lost tenants, including Bob's Stores and Party City. A rendering of an apartment building being eyed for the Simsbury Commons shopping plaza on Bushy Hill Road. CONTRIBUTED PHOTO BRISTOL A massive, empty downtown Bristol manufac- turing complex will find new life after a recent $6.2 million sale to Hartford-based kitchen-fur- nishings maker Max Kothari. Kothari bought the 15-acre property, at 18 Main St., earlier this month from Bristol-based manufacturer Barnes Group. The site hosts a 58,804-square-foot, four-story office and warehouse building completed in 1928; and a 224,977-square-foot, one-story manufacturing building completed in 1970. Kothari plans to use the vacant Bristol campus as a distribution hub, with "high-tech" manu- facturing and corporate offices for his Express Kitchens and New Direct Cabinets businesses. He said he also plans to open a roughly 10,000-square-foot retail outlet on-site. SOUTHINGTON A New Haven-based developer is seeking a zone change that would allow it to redevelop the former Briarwood College campus in South- ington into an over-55 residential community with 150 units. PGX Holdings purchased the property, at 2279 Mount Vernon Road, in May 2021 for $3.5 million from Briarwood Real Estate Limited. The property was later listed for sale in May 2022 for $6.9 million, but it never sold. PGX is controlled by Moises Grunblatt, who lists a New Haven business address, and Carlyle Equities LLC, state records show. The 32.75-acre property operated as Briarwood College from 1966 through early 2010. It later became Lincoln College of New England, which moved out of the property in 2018 and shut down in 2019. PGX is seeking a zone change so it can convert seven existing buildings on-site into 150 studio and one-bedroom apartments that would be restricted to tenants aged 55 and over. The units would range in size from 350 square feet to 1,000 square feet. CHESHIRE A Milford couple has acquired the defunct Hickory Hill Orchards in Cheshire for $3.2 million, with plans to revive the agricultural property. Former owners Fredric and Lynn Kudish this month sold the properties at 351 and 363 South Meriden Road, which total 27.9 acres, to Hickory Hill Holdings LLC. Hickory Hill Holdings is controlled by Milford residents Suzanne Jagoe and David Esposito, who is a surgeon. The parcel at 351 South Meriden Road contains a retail store built in 1961, surrounded by rows of apple trees and other vegetation. A 4,143-square- foot colonial home with four bedrooms is nestled behind the store. Hickory Hill Orchards was known for its pick- your-own apple offerings before it closed at the end of the 2022 season after more than 40 years in business. The new owners plan to improve the orchard and continue to grow apples, pears and other fruit. They also plan to upgrade the retail store into a "full-time community asset." In addition, they plan to host outdoor events and, in the future, may seek zoning approval for a permanent indoor venue. GREENWICH A developer is proposing to convert a two-story office building in Greenwich, at 18 Valley Road, into a four-story apartment building with 46 units. Fareri Associates, doing business as Green- wich Park LLC, plans to construct the apartments within the building's first-floor parking area, second and third floors and an added fourth floor. The apartments would consist of 17 one-bed- room units; 13, two- and three-bedroom units; and three, four-bedroom units, according to plans. Two apartments would be deemed moderate-income dwellings. The building would contain 88,634 square feet of living space within the converted 42,011-square-foot office building and a single-family home on-site. Snowball Developments purchased this 507,000-square-foot South Windsor warehouse, at 301 Governors Highway, in February for $27.85 million. PHOTO | COSTAR Snowball Development Continued from page 7

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