DANBURY, CT—It took four and a half years for the partnership of Summit Development of Southport, CT and The Grossman Companies of Quincy, MA to nearly double their money on the purchase of the Lee Farm Corporate Park here.
The Summit-Grossman partnership has sold the nearly 216,000-square foot fully-leased office park to CT Property Realty LLC for $31.75 million. Summit-Grossman purchased the complex for $16.9 million in April 2013.
Jeff Dunne of the CBRE Investment Sales Team and Steven Bardsley, CBRE senior vice president for CBRE Institutional Properties at CBRE/Capital Markets, represented both the sides in the transaction.
A key to the escalation in value during that period was its lease-up. The Summit-Grossman ownership acquired the property that was built in 1987 and began extensive renovations to the property that at the time was 65% occupied. Its investment paid off. Lee Farm’s 215,649 square feet of space is 100% leased. Its tenant roster includes: Wells Fargo, Navigator Management, IMS Health, Lenovo and Sigmund Software.
Felix Charney, principal of Summit Development says, “Our transformation of Lee Farm was both rapid and dramatic as we made extensive upgrades to the property while filling all of the vacant space and replacing GE Capital. When GE Capital vacated, we worked closely with Cushman & Wakefield to execute a lease with Wells Fargo. We have developed a reputation for being both nimble and cost effective in responding to tenant needs, and that has enabled our portfolio to continue to expand with diverse, high-quality properties.”
Jake Grossman, president of The Grossman Companies, adds, “This acquisition fit nicely with our platform with Summit of acquiring well-located properties where we can aggressively meet market demand for space and exercise our hands-on approach to value creation. We are proud of what we accomplished with Lee Farm. It offers a perfect example of our approach as we continue to expand our portfolio, which currently includes several properties in Connecticut and New York.”
Summit Development is also the owner of the former Reader’s Digest headquarters complex in Chappaqua, NY that is being redeveloped into a mixed-use complex that will feature office, retail and residential housing. Among some of the Westchester County property’s chief retail tenants will include a Whole Foods and Lifetime Fitness facilities.