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February 9, 2023

NY investor adds 120,000-sq.-ft. South Windsor warehouse to fast-growing CT inventory

Contributed 555 Nutmeg Road North, South Windsor
By Michael Puffer

Continuing a buying spree of Connecticut industrial properties that began last year, Brooklyn-based real estate investor Snowball Developments paid $9 million for a nearly 120,000-square-foot industrial building on 12 acres in South Windsor.

Snowball bought the property at 555 Nutmeg Road North from a collection of five limited liability companies in a deal recorded by the town on Feb. 1.

The building currently hosts tire distributor Max Finkelstein Inc., and the selling LLCs all tie back to the company, which was family-owned until recently, said Snowball Developments President Brian Ker, who confirmed the sales price. 

About a year ago, it was reported that tire distributor U.S. AutoForce acquired Astoria, New York-based Max Finkelstein Inc. for undisclosed terms. 

At the time of the deal, Finkelstein operated 15 distribution centers in the Northeast and Mid-Atlantic. Under the deal, U.S. AutoForce would grow to operate 62 distribution centers servicing 45 states, according to an announcement.

U.S. AutoForce has signed a short-term lease to stay at 555 Nutmeg Road North, Ker said. He hopes to convince the company to remain long term, but the property has value either way.

Ker noted South Windsor currently has a moratorium on the construction of new warehouses, which is increasing demand for pre-existing logistics space.

An uproar by residents opposed to the rapid addition of large logistics centers in town prompted South Windsor officials last April to adopt a year-long moratorium on new applications for warehouses, logistics centers and freight terminals.

“Part of our analysis was that tenants are growing and if we do have a vacancy we might have the only available vacancy,” Ker said.

Ker said he plans to “spruce up” the 42-year-old warehouse with new paint, parking lot repairs and other cosmetic upgrades. Snowball may build additional loading docks as well, he said.

“It probably needs a couple hundred thousand dollars of TLC,” Ker said.

Snowball Developments spent $33.2 million last year buying five Connecticut industrial properties in Danbury, Norwich, Glastonbury, East Hartford and Watertown. The company focused on sites attractive to companies pushed out of the increasingly expensive Interstate 95 corridor, as well as properties with excess land providing development potential.

Ker said the 12 acres at 555 Nutmeg Road North offers room for an expansion of the existing building, or development of outdoor storage in a market with heavy demand for logistics sites.

“We feel comfortable that we would have some options for the property long term,” Ker said. 


 

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