MANCHESTER — The latest sale of 4 industrial buildings in southern New Hampshire for $58.5 million exhibits the recognition of the Granite State with buyers who wish to purchase property exterior main metropolitan areas, in keeping with individuals concerned within the deal.
Primarily based on latest industrial actual property gross sales, curiosity in properties throughout the state is peaking amongst each regional and out-of-state buyers. The pattern is seen as a means for consumers to spend money on actual property with the next return on funding and with out taking over the price of new development and discovering tenants.
The portfolio of 4 industrial properties totaling almost 600,000 sq. ft situated in Hudson, Manchester and Nashua offered above the $56 million asking worth after a number of rounds with greater than a dozen bidders, in keeping with Thomas Farrelly of Cushman & Wakefield, who brokered the deal.
Brady Sullivan Properties offered the buildings to Boston-based Albany Street Actual Property Companions final week . Exterior New England, Albany Street owns property in Tennessee, Georgia, North Carolina, South Carolina and Texas, in keeping with its web site.
“It was largely due to how extremely well-received the properties had been by buyers from throughout the nation,” Farrelly mentioned of the sale worth. “Brady Sullivan did such an excellent job in repositioning the buildings.”
The properties embody the Manchester Air Middle at 1050 Perimeter Street, Brady Sullivan Airport Middle at 645 Harvey Street in Manchester, 5 Wentworth Drive in Hudson and 22 Cotton Street in Nashua. The buildings had been about 97% leased with 21 tenants, in keeping with Cushman & Wakefield.
Southern New Hampshire is a secondary market to bigger cities similar to Boston, Farrelly mentioned.
Brady Sullivan waited for an opportune time to promote after upgrading and branding the properties, he mentioned.
“They knew this asset class was peaking in demand,” he mentioned.
A consultant with Albany Street Actual Property Companions didn’t return cellphone calls in search of touch upon the sale.
Brady Sullivan labored to renovate the buildings and fill them with tenants earlier than the transaction, mentioned Arthur Sullivan, one of many house owners. The corporate purchased the properties between 2005 and 2015.
“We felt like we had maximized the worth of these specific properties, and it made sense for us to place them available on the market,” he mentioned.
Many industrial actual property buyers are on the lookout for properties which might be largely leased, which provides worth. New development could be extra pricey for buyers, Sullivan mentioned.
“It simply goes to indicate that New Hampshire remains to be a really robust market,” he mentioned. “Individuals coming in from the skin wish to have a foothold right here.”
On the opposite facet of Manchester, Anagnost Corporations offered a 20,000-square-foot constructing occupied by Planet Health at 99 Eddy Street to Michigan-based Agree Improvement LLC for $four.2 million. Colliers Worldwide brokered the deal.
“They personal a constructing in Nashua,” mentioned Bryan Wright of Colliers mentioned of Agree Improvement. “They do loads of single-tenant retail property and so they look throughout the nation.”
Planet Health has a long-term company lease on the constructing.
Robert Gagne, who chairs town’s board of assessors, didn’t appear shocked by the value tag within the Brady Sullivan deal.
“I feel they’re shopping for extra than simply the true property. They’re shopping for an excellent tenant with a lease that’s going out for a couple of years,” he mentioned.
Gagne mentioned the state has seen comparable gross sales and investments made in condo complexes throughout southern New Hampshire. He additionally talked about the $39 million sale of the Citizen Financial institution constructing in downtown Manchester in March.
“It’s not risk-free, however a low danger that’s going to pay them at a greater price of return they’ll get with CDs or shares,” he mentioned.
Farrelly thinks curiosity from buyers will persist.
“Increasingly more persons are waking as much as the alternatives that secondary markets supply,” he mentioned.
