Two Middletown apartment complexes have been sold for $75 million to Philadelphia-based BPG Properties, a real estate fund manager making its first Connecticut splash.
The two complexes are the 314-unit Chestnut Hill Apartments located on 29.44 acres at 5 Town Colony Drive and the 336-unit Northwoods Apartments situated on 17.37 acres at 1 Dove Lane. The total number of units involved in the deal is 650. The average price per unit was $115,385.
Following the sale, the official owners will be Northwoods Apartment Associates LLC and the Chestnut Apartment Associates LLC, both of which are managed by BPG Properties.
The seller in the deal was the Middletown-Oxford Limited Partnership and the Connecticut Colony Associates Limited Partnership.
BPG Properties officials said they planned to acquire another multifamily community from the seller later this year but declined to provide specifics.
Steve Pogarsky, a BPG Properties vice president, said the Middletown deal, the firm’s first multifamily acquisition in Connecticut, provided BPG with “the opportunity to expand our multifamily portfolio into New England.”
The two apartment complexes will be managed by BPG’s multifamily operating arm, Madison Apartment Group.
BPG acquisition manager Greg Curci said both complexes will undergo renovations starting immediately.
“We will begin a multimillion dollar improvement program to upgrade the physical condition of both the buildings and the site,” Curci said. “The program will address the roofs, facades, parking lots and site landscaping.”
Both the buyer and seller were represented by New Haven-based Steven Witten and Victor Nolleti of Marcus & Millichap Real Estate Investment Services.
Bolton Warehouse Deal
A Wisconsin company has sold an industrial warehouse at 25 West St. in Bolton to Swanson Holdings LLC, a private holding company based in Hebron, for $975,000.
CB Richard Ellis, which announced the deal, represented the seller, Hendricks Commercial Properties of Beloit, Wisc.
Kathleen Joppru of Prudential Connecticut Realty represented Swanson, the buyer.
Hendricks Commercial Properties, which manages more than 600 commercial properties nationwide, had acquired 25 West St. in 2004.
Mark Reardon, CB Richard Ellis executive vice president, and Robert Daglio, CB Richard Ellis senior vice president, represented Hendricks Commercial Properties.
The industrial warehouse at 25 West St. encompasses 30,376 square feet and was built in 1990 on approximately 7.5 acres. It is located less than two miles from I-384 and offers immediate access to the retail section of neighboring Manchester, CB Richard Ellis officials said.
Bakery Development
Vermont-based Bruegger’s Enterprises Inc. has announced a development agreement with Five Star Equity Partners to build three new Bruegger’s bakeries in southern Connecticut.
Five Star Equity partners is led by David Katz, the general manager of the Wallingford Bruegger’s location and a graduate of the Center for Culinary Arts in Cromwell.
Founded in 1983, Bruegger’s has roughly 260 neighborhood bakery-cafes in 21 states and is best known for its bagels.
Bruegger’s CEO Jim Greco said in a statement that Katz is a “great example of the future of Bruegger’s.”
“His passion for developing fresh, healthy food enables allows us to expand confidently to new markets,” Greco said.
The first of the three locations is set to open later this month in Orange, with the other two sites to be announced at a later date.
The deal with Katz is part of a nationwide development push for Bruegger’s that has included signed franchisees in New York City; Kansas City, Mo.; Columbus, Ohio; and Orlando, Fla., as well as a new airport location at Logan Airport in Boston.
Sean O’Leary is a Hartford Business Journal staff writer.
