Main Office
132 Old Post Road
Southport, CT 06890
Phone: 203-255-1700
Fax: 203-259-3030
Mid Atlantic Office
511 W. Beechtree Lane
Wayne, PA 19087
Phone: 610-293-1976
Fax: 610-293-7617
Transaction History
45 & 55 Church Street
New Haven, CT
Acquired: 5/15/2004
Description:
The property consists of an eight story office tower which is 76% leased to eleven tenants. The adjoining building is a 24,000 sf bank branch built in 1900 and net leased to Wachovia through 2008. The two buildings are located on Church Street in downtown New Haven approximately one block from the New Haven Green. The property was recently renovated with a new lobby, entrance and common areas.
Major Tenants:
Yale University; Wachovia; American Medical Response; Kinkos; Drug Enforcement Agency
Investment Rationale:
• Strong going in yield of 8.3% on existing NOI of $600,000
• The purchase price of $57.87 per square foot is a significant discount to replacement cost
• Additional upside through the leasing of 21,859 square feet
• Located directly across the street from the redevelopment of the Chapel Square Mall which will bring luxury residential units and national retail tenants to the area
• Average leases in the building are 10%-15% below the average rents for the market
Value Added and Current Status:
• On June 3, 2004 the State of CT announced a commitment of $180 mm to redevelop the 9th Square Area of New Haven where 55 Church St. is located. This commitment will help fund the building of the 360,000 sf Gateway Community College and the demolition of the Coliseum. The proposed project for the Coliseum site will include a hotel, conference center, the new home of the Long Wharf Theatre and 280 residential units
• Several market rate residential projects totaling over 400 units, most of which are adjacent to 55 Church St., have been completed and are successfully leasing up