Investor swaps apartments for retail as part of long-term portfolio strategy.
A West Hartford real estate broker and investor recently paid $5.2 million for an Essex retail plaza, continuing a shift away from multifamily properties and toward retail investments.
Jeffrey Morrow, founder of Morrow Realty, purchased the 43,472-square-foot Bokum Center at 125 Westbrook Road.
The 3.87-acre property includes a 40,722-square-foot retail strip built in 1985 and divided into seven units, as well as a 2,752-square-foot freestanding building constructed in 1979 that previously housed a bank and is currently vacant.
The acquisition was completed through a 1031 tax-deferred exchange, about a month after Morrow sold a three-story, 30-unit apartment building at 39 Washington St. in Bristol for $4.17 million.
Morrow said the Essex purchase reflects a broader strategy to reduce his exposure to multifamily properties in favor of retail investments, which he views as offering more predictable income and fewer day-to-day management demands.
He said he has exchanged most of a multifamily portfolio that once totaled 78 apartment units for retail plazas in several Connecticut communities, along with a small amount of office space. He still owns a 10-unit apartment building.
Morrow said Connecticut’s increasingly tenant-friendly laws were a major factor in the shift. He cited situations in which tenants have claimed animals as service animals despite building pet restrictions, which he said has created challenges for landlords and some residents.
In contrast, retail properties leased under triple-net agreements generally place responsibility for maintenance, taxes and utilities on tenants under longer-term leases.
The Essex property also presents an opportunity to increase occupancy by leasing two vacant spaces, including the former bank building and a 3,300-square-foot unit with a loading dock and glass storefront, Morrow said.
Current tenants include Walgreens, Snap Fitness, Dollar General, Essex Wine and Hong Kong Kitchen, among others.
Morrow financed the Essex acquisition with a $3 million mortgage from Guilford-based Ascend Bank.
“Essex is a beautiful town, and this was the only plaza with multiple national tenants,” Morrow said.
He said he plans to undertake some beautification projects, though the previous owners had already completed significant upgrades, including facade improvements, a new roof and other capital investments.
The sellers were an LLC headed by Livingston V. Morris Jr., of Glastonbury, and J. Richard Lee, of Guilford. Morris and Lee are managing partners of OR&L Commercial, one of Connecticut’s largest privately held real estate advisory and brokerage firms.
According to town records, Morris and Lee paid $1.87 million for the property in late 2023.
Morrow represented himself in both the sale of the Bristol apartment building and the purchase of the Essex retail plaza. Frank Hird and J. Richard Lee of OR&L Commercial represented the seller.
