"This recapitalization is consistent with our commitment to ourinvestors to seek out value-add opportunities in the marketplaceand to stabilize and reposition these assets for an ultimatedisposition or recapitalization," says James Hanson II, CEO andpresident of Hampshire, in a statement. "We are pleased to havecompleted this complex and strategic transaction and look forwardto building upon the relationship with our new partner."

As part of the recapitalization, the joint venture concurrentlyrefinanced 11 of their 14 properties with a new fixed-rate firstmortgage loan from New York Life. Managing directors Adam Spies andKen Ziebelman of New York City-based Eastdil Secured structured therecapitalization and arranged the first mortgage loan with New YorkLife. Further details of the transaction were not released.

The Hampshire Partners Fund VI is a commingled, discretionaryvalue-added real estate investment fund that focuses on value-addindustrial, retail and suburban office properties in the Northeastand Mid-Atlantic region.