MONTVILLE, NJ-The Hampshire Cos. has acquired the 112,500-sf industrial/warehouse building at 54 E. Indian Lane here for $7.4 million, which calculates as $66 per sf. The pick-up was made on behalf of the private real estate investment fund manager's Hampshire Partners Fund VI.
The identity of the seller was not disclosed. Situated on a 10.4-acre site, the building is fully leased to Phoenix Marketing Group, a wholly owned subsidiary of Express Scripts Inc., a pharmacy benefits management company based in St. Louis. The building is utilized for W/D purposes.
"The property was particularly attractive because of its existing lease with a very credit-worthy tenant and its location in a market with limited industrial vacancy," says Norman A. Feinstein, EVP of the Morristown, NJ-based Hampshire. "Our aim is to increase the value to the tenant and retain them within the building beyond lease expiration in 2008.
"The property fits extremely well within our overall acquisition and investment strategy, which is to seek out well-located facilities that are attractive to or currently under lease to investment-grade tenant," Feinstein says. "With this acquisition, Hampshire Partners Fund VI is now almost 50% invested. With the target leverage set at 60% to 65%, the fund will be acquiring more than $300 million of additional real estate over the rest of its three-year investment period."
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