Hartford Federal Credit Union has sold a 5,090-square-foot commercial building housing its South Windsor branch for $1.35 million.
Hartford Federal sold the building on 1 acre at 1665 Ellington Road to West Hartford-based Greenpoint Equity LLC in a sale logged by the town on Dec. 6. The building also hosts South Windsor Pediatrics and Burns Computers, a computer sales and service store.
Greenpoint Equity’s principal is Daniel Scaringe, of West Hartford.
“There isn’t a lot to it other than we got out of the landlord business and leased our space back,” said Ed Danek Jr., Hartford Federal’s president and CEO. “The branch will continue to operate seamlessly. Members won’t know the difference. It does, however, take a lot of the property management burden off of us and we’ll pay the rent from the income on the reinvested proceeds, while realizing a $667,000 gain on sale of the property.”
Danek said the credit union has a 10-year lease, with three, five-year options for renewal.
Danek said the sale took place at or near the top of the market. The credit union paid $850,000 for the property in 2005. Hartford Federal booked the asset at under $600,000 with depreciation, according to Danek.
The roughly 17,000-member credit union has $159.9 million in assets. It runs three branches, in addition to its Hartford headquarters. Danek said the bank is the sole occupant of its Stafford and West Simsbury branches, so further branch property sales are unlikely.
Larry Levere and Mark Duclos of Sentry Commercial brokered the sale for Hartford Federal.
Levere said the property went on the market in June and was under contract with Greenpoint in July.
“There was a ton of interest — quite a few offers and quite a few inquiries,” Levere said.
