Griffin, Walgreen Co. Sign $13M Contract for 130-Acre Property Sale

WINDSOR, CT-A $13-million purchase and sale agreement has been reached between Griffin Land & Nurseries Inc. of New York City and Walgreen Co. of Deerfield, IL. The drug store chain intends to acquire 130 acres of undeveloped land in Griffin's New England Tradeport complex where it hopes to build a 700,000-sf distribution center.

The two parties signed a letter of intent last month. The completion of the transaction is expected by mid-2006 if all conditions are met.

The New England Tradeport property totals 600 acres. Griffin Land currently owns approximately 800,000 sf of light manufacturing and warehouse space at the complex in eight different buildings in the park. According to Thomas Lescalleet, senior vice president of Griffin Land, the New England Tradeport property is currently about 82% occupied.

The conditions of the sale include obtaining all required approvals from governmental agencies for the proposed Walgreens distribution center; and obtaining a certificate from the Connecticut State Traffic Commission that would approve the project as well as more than one million sf of additional industrial space on property that is not part of the sales deal with Walgreens. Griffin Land has the potential to develop as much four million sf of additional space within the park, which would include the Walgreens project and the one million sf of speculative development.

Griffin Land's Lescalleet tells GlobeSt.com that the firm plans to begin construction on a spec 128,000-sf high bay industrial building at the New England Tradeport property in May.

Walgreen's reported when the deal was first announced that it would be investing $175 million in the distribution center project. The center would initially have more than 220 employees, but could grow to as many as 550 workers as the facility services more Walgreens stores.