A New York investor has refinanced a 115,800-square-foot South Windsor warehouse with a $9.5 million loan.
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A New York-based investor that has acquired at least 10 warehouses in Connecticut during a four-year buying spree has refinanced a 115,800-square-foot distribution facility in South Windsor with a $9.5 million permanent loan.
JLL Capital Markets represented Snowball Developments in securing a five-year, fixed-rate loan on 555 Nutmeg Road through Lincoln, Nebraska-based Ibexis Life & Annuity Insurance Co. The mortgage recorded Sept. 17 was addressed to Ibexis, in care of DoubleLine Capital LP, in Los Angeles.
Built in 1980, the single-story industrial property sits on 12.1 acres and features 14 truck-level loading docks, two drive-in doors, and 25-foot clear heights with 60-by-25-foot column spacing. The building includes about 6,580 square feet of office space and 44 surface parking spaces, with the potential to expand to 136 spaces.
New York-based Snowball Developments paid $9 million for the property in early 2023.
Launched in 2021, Snowball has bought at least 10 Connecticut warehouses so far, spending $108.6 million. Snowball President Brian Ker, interviewed earlier this year, said his company has acquired another three industrial properties in New Jersey at a cost of about $40 to $50 million.
The South Windsor property exemplifies Snowball’s strategy of acquiring older, well-located buildings that can yield higher rents with targeted upgrades.
The building at 555 Nutmeg Road is home to U.S. Autoforce, one of the nation’s largest wholesale tire distributors. The company has operated there since the property was first developed, using the site as a custom-built warehouse for tire storage and distribution.
Ker said the refinancing will allow Snowball to undertake "significant" improvements agreed to in a new lease with the tenant. The new loan also comes with a reduced interest rate and allows Snowball to return some cash to investors, he said.
The JLL Capital Markets team was led by Senior Director Max Custer, Director Ryan Carroll and Analyst Michael Donohoe.
"Snowball continues to demonstrate their ability to execute on value-add industrial strategies across the Tri-State region, and as a result, there was no shortage of lender interest on this financing opportunity,” Custer said.