Brookwood Financial Partners, L.P. (“Brookwood”) announced that its affiliate, Brookwood Real Estate Partners II, LLC (“BREP II”), has acquired three office properties containing an aggregate of 243,480 square feet in Middletown, Rhode Island. This represents Brookwood’s first purchase of commercial real estate in Rhode Island. The total purchase price for the properties was $17,400,000 or $71.46 per square foot.
Middletown is located in southeastern Rhode Island on Aquidneck Island, which has emerged as a center for high-technology businesses, the majority of which have ties to the defense industry. The three buildings, commonly referred to as Tech 2, 3 & 4, are located in one of the premier corporate office parks in Middletown. The properties are currently 77.6% leased and include credit tenants KVH Industries, Inc. and divisions of Northrop Grumman Corporation and BAE Systems plc.
“The buildings are easily accessible, offer ocean views and are proximate to a variety of amenities,” said Thomas W. Brown, Brookwood’s Director of Acquisitions. “We believe we can lease up the vacant space because the buildings are an attractive value option for tenants in the market. In addition, we plan to make significant improvements to the properties, including upgrades to the common areas and landscaping,” continued Brown. The buildings may be demised for smaller tenants but also provide one of the few options for tenants seeking space in excess of 10,000 square feet.
“This acquisition is consistent with our current strategy of acquiring real estate assets in secondary and tertiary markets,” added Brown. “While we previously purchased properties in major metro areas, we are now targeting smaller markets that offer more attractive pricing and higher yields. This purchase in Rhode Island is a direct result of expanding our targeted acquisition markets.”
Alden Anderson of CB Richard Ellis represented the seller, Tech Plaza 2,3 & 4 LLC, in the transaction.
Brookwood is a Massachusetts-based private equity firm that acquires real estate and invests in private companies. Since 1993, Brookwood has acquired 59 properties totaling approximately 8.1 million square feet of office, retail and research & development space as well as 143 hotel rooms, 138 condominium units and 572 apartments units. Brookwood has acquired real estate assets throughout the United States including Arizona, California, Colorado, Florida, Georgia, Maine, Maryland, Massachusetts, New Jersey, North Carolina, Rhode Island, Texas, and Virginia. In addition, Brookwood has invested in eight private companies in the wireless telecommunications, restaurant, software and outsourcing industries. Brookwood has invested over $350 million in equity to acquire assets with a realized and unrealized value of approximately $1.1 billion.