Rose Smart Growth Investment Fund I and Hurley 45-55 Church Street acquire New Haven office complex for $8 million, plan to reposition property as city's first LEED EB certified building
NEW HAVEN, CT – January 20, 2008 – Jonathan Rose Companies, LLC, a green real estate development, planning, consulting and investment firm, has announced that a joint venture of the Rose Smart Growth Investment Fund I, L.P. and Hurley 45-55 Church Street, LLC, an affiliate of The Hurley Group, have acquired 45-55 Church Street in downtown New Haven, CT. The 130,000 square foot office complex on 1.29 acres was sold for $8 million by ECP Church, LLC. Dara Kovel, Regional Director for Jonathan Rose Companies, made the announcement.
Steven Inglese and Rob Montesi of The New Haven Group, Inc. were the sole brokers in the transaction.
The property consists of an eight-story office tower with 105,522 rentable square feet at 55 Church Street; a three-story Greek revival style bank building with 24,126 rentable square feet at 45 Church Street; and an adjoining 76-space parking lot.
The joint venture partners will leverage their deep knowledge and experience with the repositioning of real estate assets and green building to improve the property’s competitive position in the market as a preferred alternative for institutions and non-profits requiring green office space. An additional $3 million will be invested for capital expenditures and leasing costs. The partners will seek certification of the property with the U.S. Green Building Council’s Leadership in Energy Efficient Design – Existing Building (LEED-EB) program and the EPA’s Energy Star Program to generate operating efficiencies and improve the environmental performance of the buildings.
“The proposed capital improvements and greening program will provide greater incentive for long-term tenants to renew leases upon expiration and will dramatically improve the marketability of the property to prospective tenants,” said Dara Kovel, Regional Director for Jonathan Rose Companies. “Existing buildings make up over 99 percent of the office inventory nationwide; greening them is an integral part of providing a healthier and more energy–efficient workplace, and has become an attractive tool in marketing to new tenants.”
The property is ideally located near the New Haven Green, City Hall, Yale University’s Central Campus and the Ninth Square residential and retail district, as well as across from the relocation site for Gateway Community College. It benefits from outstanding transit access, with the State Street station offering both Metro North and Shoreline East service just two blocks away, and Union Station just a half mile away. New Haven’s general plan for development calls for Church Street to become a central corridor connecting downtown with the railroad station and the highway. When complete, the property will occupy a strategic position on one of the city’s main arteries.
Built in 1972 and renovated in 1999, 55 Church Street is currently 71 percent occupied by 13 tenants. The property at 45 Church Street was built in 1907 and was most recently leased to Wachovia Bank for their flagship New Haven branch. The property may remain a bank branch or be renovated for other uses such as a restaurant, retail, community performance or gallery space or other functions associated with the future Gateway Community College.
Financing for the project was provided by Chase under the U.S. Treasury Department’s New Markets Tax Credit (NMTC) program. “We are pleased to provide financing for the acquisition and capital improvements and believe that the experience and vision of the developers will result in high quality, green retail and office space in downtown New Haven,” said David S. Watson, vice president at Chase.
“The properties at 45-55 Church Street are a prime example of the type of asset targeted by the Rose Smart Growth Investment Fund I,” said Nathan Taft, Director of Acquisitions for Jonathan Rose Companies. “The Fund is committed to acquiring real estate near transit or in walkable communities, and enriching these assets with green management practices, professional real estate skills and a long-term investment strategy.”
About Jonathan Rose Companies LLC: Jonathan Rose Companies LLC is an award winning real estate development, planning, owner’s representative, and investment firm whose mission is to repair the fabric of communities. A leading green urban solutions provider, the firm currently manages over $1.5 billion of work, much of it in close collaboration with not-for-profits, cities and towns. Jonathan Rose Companies has offices in Connecticut, New York, Colorado and New Mexico. For more information, visit www.rosecompanies.com.
About The Hurley Group: The Hurley Group owns and manages commercial real estate throughout the State of Connecticut and specializes in redeveloping under-performing assets.
Eric R. Gerard
Senior Vice President
Great Ink Communications
27 Union Square West, Suite 205
New York, NY 10003