Wharton Industrial and Rabina Buy a 320,000 SF Central Connecticut Industrial Warehouse for $25,250,000


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A joint venture between Wharton Industrial, a platform company of New York City-based Wharton Equity Partners, and New York City-based investor and developer Rabina has acquired an approximately 320,000 SF industrial warehouse at 475 Knotter Drive in Cheshire, Connecticut for $25,250,000.

The joint venture acquired the asset pursuant to a sale-leaseback with Macy’s Inc., which will continue to fully occupy the facility as one of the main United States distribution hubs for its subsidiary company, Bloomingdale’s.

“What attracted us to this opportunity was the ability to buy a great building below replacement cost in an excellent location,” notes Peter C. Lewis, Chairman and Founder of Wharton Industrial.

The warehouse is situated just outside of Hartford, the state capital of Connecticut, strategically located equidistant between Boston and New York, and offers direct access to the interstates and thoroughfares in the region.

“Furthermore, we entered into an attractive leaseback that provides positive leverage in the near-term at a rent that is below market,” says Mr. Lewis. “This allows us to enjoy strong cash flow as the economy stabilizes and positions us for a material mark-to-market opportunity when the lease with Macy’s ends.”

The joint venture anticipates undertaking a capital improvement program at the property at the end of the lease term as part of its re-leasing efforts. Washington Trust of Westerly, Rhode Island provided financing for the transaction.

“At 320,000 SF and 32’ clear ceiling heights, along with excellent loading, parking, and trailer storage,” points out Mr. Lewis, “the property is highly functional and contrasts extremely favorably with the limited number of other assets of this size range within the market.”

Wharton Industrial has been very active recently, including the $195 million sale of a 1.3 million SF portfolio in southern New Jersey and the development of a $250 million, 1.5 million SF industrial park in Mesa, AZ.

“We are thrilled to partner with Wharton on the acquisition of 475 Knotter Drive. The property is highly functional and well located in a market characterized by regional connectivity to major population hubs, strong tenant demand, and limited supply,” states Josh Rabina, President of Rabina.

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Nicole Lambert
Nicole Lambert
Nicole Lamber is a news writer for LinkDaddy News. She writes about arts, entertainment, lifestyle, and home news. Nicole has been a journalist for years and loves to write about what's going on in the world.

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