New York-based Stonemar Properties has purchased a regional shopping center in the Milford, Conn. retail corridor for approximately $30 million. Stonemar, a real estate investment and management company, partnered with Morristown, N.J.-based The Hampshire Real Estate Cos. to acquire the property, Milford Plaza.
“This property is one of the best-located in New England, with close proximity to the region’s dominant mall, which draws 12 million shoppers a year,” says Jonathan Gould, Stonemar’s chief executive officer.
The 181,000 sq. ft. center is one third of a mile from the super regional, newly expanded 1.4 million sq. ft. Westfield Connecticut Post Mall. Milford Plaza is 88% occupied with letters of intent covering the balance of the currently vacant space. The project is on the I-95 corridor midway between Bridgeport and New Haven, Connecticut’s largest and third-largest cities.
The acquisition conforms to Stonemar’s model of strip and power-center retail properties adjacent to dominant regional malls, according to Emmet Austin, chief investment officer for Stonemar Properties.
“We look for healthy income-producing properties with a good track record and strong upside potential in high-growth primary, secondary and tertiary markets,” Austin says. “Acquisitions meeting these criteria help us deliver equity-like returns with relatively low bond-like risk.”
Bank of America provided financing for the acquisition. Stonemar Properties has interests in more than 11 million sq. ft. of shopping, power and outlet centers in 21 states.