Hampshire Buys 108,000-SF Industrial Building

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TETERBORO, NJ-The Hampshire Cos. has acquired the 108,400-sf industrial building at 200 North St. here for an undisclosed price. Morristown-based Hampshire bought it on behalf of Hampshire Partners Fund VI, the firm’s institutional real estate investment fund.

Hampshire was represented in the transaction by Andrew Somple, senior vice president of NAI James E. Hanson, Hackensack. The seller, Party Rental Ltd., was represented by Robert C. Kossar and David E. Knee, executive vice presidents, and Chris Hile, vice president of the locally based Lee & Klatskin Associates.

The seller, a major supplier of special events items and equipment, will continue to occupy the building as a tenant on a short-term basis. Party Rental Ltd. has used the site as its headquarters, showroom and warehouse since 1982, but will shortly be moving out to another nearby location, a move that will kick off a renovation and repositioning of the asset by the new owner.

“This property was especially attractive because of its location and the ability to quickly renovate it,” says Norman A. Feinstein, EVP of the Hampshire Cos. “Our vision is to move quickly to add value to this asset so that it generates a substantial return for our investors. The property is indicative of our overall acquisition and investment strategy of seeking out well-located facilities that are attractive to, or currently under lease to, investment-grade tenants.”

Once the building is vacated, Hampshire’s plan is to do a complete overhaul, including raising the roof to 36-foot clear, “to reposition it as a class A warehouse property,” Feinstein says. The asset is situated on 6.1 acres, two blocks from Teterboro Airport, a general aviation facility operated by the Port Authority of NY/NJ.

“The property is in one of the lowest tax value municipalities in Bergen,” says NAI James E. Hanson’s Somple. “The property also offers significant infrastructure. It should be a very valuable addition to the Hampshire Partners Fund VI portfolio.”