The Geenty Group, Realtors is pleased to share that Bill Clark, Senior Vice President, exclusively represented G&G Investments, LLC and its principals in the purchase of a 33,270 square foot building situated on slightly more than 10 acres located at 32 Commerce Drive in North Branford, Connecticut. The building, formerly owned by Frontier Communications, is comprised of approximately 10,000 square feet of office space, adjoined by a 24,000 square foot warehouse. Of particular interest to the buyers was the additional 16,576 square foot covered loading and vehicle parking area which may be immediately enclosed, nearly doubling the size of the existing warehouse.
In the fall of 2019, G&G investments enlisted Mr. Clark to help find a building to purchase which would meet their growing and diversified future needs. After an extensive market survey and a few property tours (none of which fit the bill), Mr. Clark pointed the buyers to an off-market property that he had previously listed for sale in East Haven. While it was less than ideal for the buyer’s needs and there were some logistical hurdles to be cleared as the building was not fully available for immediate occupancy, G&G settled their sights on that property.
Meanwhile, even with the parties well into negotiations on the East Haven property, Mr. Clark continued to keep an eye out for a better option. When he saw the North Branford property appear on the market, he knew it was perfect for G&G Investments and immediately arranged a tour. After the first tour of 32 Commerce Drive, the buyers instantly shifted gears. The property not only met their current expansion plans, but offered great potential for entry into new ancillary business channels as well.
While the property was perfect, the terms of the sale were a challenge. The sellers insisted that any buyer adhere to several contingencies. The buyer was required to pay in cash, there would be no mortgage contingency. The buyer was allowed to do inspections for informational purposes, but there would be no negotiation on price, regardless of the condition of the building or mechanical systems. The buyer must agree to lease back the building to the seller for up to six months following closing with the seller paying only operating expenses, no rent. Finally, the sale of the building had to be approved by the Public Utility Regulatory Authority (PURA). In addition, the seller’s agency would offer no sales commission on this purchase, leaving it to G&G Investments to compensate Mr. Clark for his work.
Fortunately, the buyers were amenable to those terms. The buyer was granted a due diligence period to conduct inspections. That left only the question of any environmental concerns. The seller provided a Phase I environmental report which the buyers, aided by Mr. Clark, determined showed no concerns. Once PURA approved the contract, the sale proceeded to closing and title transfer. The purchase price was $1,700,000.00.
