Developer Luzern Associates has fully leased a 170,300-square-foot industrial building in Windsor less than two years after completing the roughly $28.5 million project on a speculative basis.
The Home Depot USA Inc. occupied about 117,000 square feet at 425 Day Hill Road at the start of this year under a long-term lease. Ferguson, a Fortune 500 distributor of plumbing, HVAC and other building products, occupied the remaining 53,300 square feet under a five-year lease that began in April.
Luzern, which has offices in Boston and Greenwich, partnered with Boston-based real estate developer Foxfield on the speculative redevelopment of the 20-acre property. The site previously hosted two office buildings — one vacant and the other largely so — that were demolished to make way for the industrial facility.
“It is a really good example of the resurgence we are seeing on the Day Hill Corridor,” said Nicholas Campofranco, principal and chief investment officer for Luzern.
The development and tenant buildouts cost about $28.5 million, Campofranco said. He credited Windsor officials with helping the developers navigate the approval and development process.
Located less than 2 miles from Interstate 91, the building features 32-foot clear-height ceilings, 25 loading docks, drive-in loading capacity and sustainable design features.
Campofranco said Luzern’s decision to build the project without tenants lined up proved critical to securing both Home Depot and Ferguson, which were seeking space they could occupy relatively quickly.
“Had we not been up and available, we would not have been able to consummate those leases,” Campofranco said.
The Windsor lease-up comes as Luzern advances another speculative industrial development in Connecticut.
The developer has launched site work for a 140,000-square-foot warehouse at 71 Commerce Road in Manchester, where Campofranco expects foundation work to begin in September.
The roughly $21 million I-291 Logistics Center is being developed on a speculative basis and is designed to accommodate as many as three tenants. Campofranco said the building is expected to be available for occupancy by the end of the first quarter of 2027.
Design and construction firm ARCO oversaw development of the Windsor property and is leading the Manchester project as well. Windsor-based Alford Associates provided civil engineering services for the Windsor development.
Christopher Metcalfe and Kyle Roberts of CBRE marketed the Windsor property and secured its tenants.
Art Ross of Newmark is leading leasing efforts for the I-291 Logistics Center.
Campofranco said Luzern is also negotiating to purchase additional development sites in Connecticut.
He said he remains “bullish” on industrial demand in the state, citing Connecticut’s relative affordability for tenants compared with locations closer to Boston and in New York and New Jersey.
