BEVERLY, Mass.--()--Brookwood Financial Partners, LLC (“Brookwood”), a leading real estate investment and asset management company, today announced the sale of Westover Road, a high bay warehouse and distribution building located in the Chicopee submarket of greater Springfield, Massachusetts. Brookwood acquired the property in December of 2010 for $4,500,000 and sold it for $8,325,000. The buyer was Stag Industrial Holdings, LLC, a publicly-traded real estate company focused on the acquisition of single-tenant industrial properties.
“We have been proving the efficacy of our post-recession investment strategy by buying sound assets at deep discounts from distressed sellers”
“We have been proving the efficacy of our post-recession investment strategy by buying sound assets at deep discounts from distressed sellers,” said Thomas Nicholas Trkla, the Chairman and Founder of Brookwood. “We are not only continuing to acquire these types of assets, but we are also successfully executing the business plan of each property and, like Westover Road, will be selling into this recovering economy for what we believe will be significant profit.”
Brookwood originally acquired 2189 Westover Road as part of a larger office/flex portfolio from a special servicer that had acquired the portfolio through foreclosure. The property was in need of an infusion of capital to address various cosmetic upgrades and to replace the roof. Brookwood was able to retain Big Y, the property’s single tenant, whose lease was set to expire in 2013, by making the needed capital improvements and by offering an attractive renewal package.
Brookwood has acquired almost 2.5 million square feet over the last two years for an average discount to replacement cost of over 60% and an average annualized cash yield of 8.2%. “Because of our low cost basis, we can offer competitive rental rates and above-standard tenant improvement allowances, which enables us to capture a disproportionate share of the demand in a given market,” said Mr. Trkla.
Brookwood represented itself in the transaction and Jim Thompson of Thompson Partners represented Stag Industrial Holdings, LLC.