A family-owned real estate company based in Mamaroneck, N.Y., recently paid $7 million for a Middletown mixed-use building with apartments and commercial space.
Two limited liability companies tied to Verco Properties bought the 17,305-square-foot building on nearly 2 acres at 211 South Main St., from 211 South Main Street LLC in a deal recorded by the city on Dec. 8.
The building was completed in 2019 and today is fully leased, hosting a Citizens Bank branch, Neil’s Donuts and an office of Middlesex Orthopedic & Spine Associates, as well as four residential apartments.
John Verni, a principal and partner at Verco, said the purchase is part of a 1031 exchange following the sale of a Verco property in Manhattan.
“It is a nice property with a nice mix of units,” Verni said. “It’s an exciting area and an area we want to invest in because we see bright things happening for Middletown and we wanted to be part of it.”
Middletown enjoys a diverse mix of restaurants and retail in its downtown, as well as the presence of Wesleyan University. Verni said. The city is in the early stages of an ambitious, long-term effort to redevelop 220 acres of former industrial land along its riverfront into a mix of parks, retail, restaurant and housing.
John Verni, who runs Verco with his brother, Chris, said the company is working to diversify its portfolio with the addition of properties in Connecticut. John Verni described Connecticut as a “business friendly” state with less onerous regulation than New York.
Another limited liability company tied to Verco paid $11.45 million for the 55-unit Addison Mill Lofts apartment building in Glastonbury in 2019.
Verco traces its roots back to Giovanni Verni, who emigrated from Bari, Italy to the U.S. in 1919, then started Verni’s Market in Manhattan. The family patriarch bought the building in the 1940s, the first of a string of purchases by the family. Today, the company is run by third- and fourth-generation members of the Verni family.
The seller – 211 South Main Street LLC – paid $700,000 for the property in 2018 before construction of the mixed-use building. The selling LLC traces to Rhode Island-based Kempenaar Real Estates Inc., a real estate company specializing in purchase, development, construction, management and operation of hotels, office and retail properties.
