M&M Expand Outside Boston Market; Manufacturing & Self Storage Sales Total $17.95M

BOSTON—Marcus & Millichap recently announced the sale of Gold’s Pure Food Product’s manufacturing facility located at One Brooklyn Road in Hempstead, NewYork as well as Clute Affordable Storage, a 452-unit Self-Storage facility at 508 E. Main Street in Clute, TX. The Long Island asset sold for $13.2M and the Texas property for $4.75M. Evan D. Griffith, First Vice President-Investments, and Tony Pepdjonovic, an Associate Director, in Marcus & Millichap’s Boston office, represented the Buyers on both 1031 exchange transactions.

These sales represent a growing trend in the commercial real estate industry in which firms capitalize on investments outside of their home markets. “We are seeing more and more of our clients looking to place capital in other markets via 1031 exchange as Cap Rates continue to compress in the Boston Metro Submarket” explains Griffith. “Historically most of the capital created in New England would stay local but we are witnessing an interesting dynamic as investors are purchasing properties around the country.”

Gold’s Pure Food Products Company, Incorporated is an American food-manufacturing company located in Hempstead, New York. The facility consists of 76,000 square feet of building space and is situated on 2.75 acres of land. The property is subject to a brand new 15-year triple-net (NNN) sale-leaseback and to 10 percent rental increases every five years. The increments will continue through the six, five-year tenant renewal options, extending the maximum potential lease term to 45 years.

Clute Affordable Storage is a 452 unit climate-controlled Self Storage Facility in the Lake Jackson Texas Submarket. The property sits on 2.4 acres and consists of 46,785 net rentable square feet of storage space. The facility has been running at 100% physical occupancy the past several years.

Pepdjonovic agrees that this trend opens up investment opportunities for firms by allowing them to take advantage of real estate trends taking place across the country. “Our access to thousands of exclusively listed properties across the entire nation really allows us to customize an investment solution for our clients who are looking to capitalize on current market conditions. We are able to accomplish their goal of increasing returns, deferring their capital gains and keeping all the benefits of owning real estate ” adds Pepdjonovic. As for the future, Pepdjonovic predicts this development will progress given the multitude of firms already holding real estate assets across the country. “We believe this trend will continue into 2018 with several of our local investors currently under contract on out-of-state investments,” he concludes.

Tony Pepdjonovic

Evan D. Griffith