BKM Enterprises is leasing back six of the buildings totaling92.3% of the properties traded for a 10-year term. "The BKMEnterprises portfolio is well-located within a stable market andmeets the mission of the USA Fund by allowing BKM Enterprises tocontinue to provide the East Hartford community with permanent andtemporary jobs ranging from tenant improvements to a potential fullbuilding renovation at 22 Rumsey Road," says Kirk Sykes, presidentof the Urban Strategy America Fund, which is headquartered inBoston.


BKM will be vacating the 22 Rumsey Rd. property, a shallow-bayflex building, which totals approximately 30,000 sf and the spaceis now available for lease, says John Dragat, CIO for the fund. Twoproperties involved in the sale are located at Founders Plaza--the70,350-sf 300 E. River Dr. and 60 Meadow Rd., which totals 52,400sf. Also part of the sale is 71 George St., a 50,000-sfcontemporary manufacturing building; 33 and 47 Leggett Rd., twowarehouse/distribution buildings that total 44,000 sf and 71,500 sfrespectively and 59/69 Leggett Rd., two shallow-bay flex buildingsthat combined total 71,600 sf. Sean Duffy of Cushman &Wakefield brokered the sale/leaseback on behalf of BKMEnterprises.


"From the investment perspective, this acquisition will bring astrong cash flow to the fund," Dragat says. "The seven-buildingportfolio will contribute to the diversity of the fund'sinvestments. The Urban Strategy America Fund was formed in 2004 butdidn't complete the raise for its $190 million Fund I until the endof 2006. Thus far the firm has completed acquisitions ofapproximately $100 million in the first year-and-a-half of theplanned three-year fund.


Dragat says that one of the main focal points for the fund'sinvestments thus far has been in the state of Connecticut. The fundowns 881 Lofts, a 40-unit housing development in Bridgeport beingbuilt in partnership with E/N Properties of Stamford. Constructionon that project is nearing completion, he notes. The fund also owns777 Brook St. in Rocky Hill a 92,500-sf property that the fundcompletely renovated and subsequently leased to the ConnecticutLottery for its headquarters operations. Other assets in itsportfolio in the Nutmeg State include 38 Hope St., a for-saletownhome community in Niantic and 545 Long Wharf Dr., a 256,000-sfoffice building in New Haven.

Want to continue reading?
Become a Free ALM Digital Reader.

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

John Jordan

John Jordan is a veteran journalist with 36 years of print and digital media experience.