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January 23, 2024

Staypoint buys former Raytheon data center building in Newington for $1.4M

CoStar 25 Holly Drive, Newington

Hartford-based real estate and investment company Staypoint has paid $1.4 million for two Newington properties that, until recently, hosted a data center for Raytheon Technologies Corp.

In separate sales recorded Jan. 16, Staypoint acquired a 61,428-square-foot industrial building on 2.5 acres at 25 Holly Drive, and an adjacent, vacant 1.57-acre property at 50 Holly Drive. The seller’s principal is Granite Ridge Fund I LP, at Dirigo Management Co., in Portland, Maine.

Staypoint has a portfolio of about 1.5 million square feet of industrial and retail properties in Connecticut, according to founder Joseph Sullo.

Sullo, who owns a warehouse at 36 Holly Drive, said Monday he was looking to buy additional property in the area and watched as the asking price at 25 and 50 Holly Drive dropped from $6.5 million to $3.5 million. Then he negotiated the price down.

“I was looking in the area and that building was for sale, and I got a good price on it,” Sullo said.

The building at 25 Holly Dr. comes with significant power capacity, including hookups capable of bringing in 4 megawatts from the grid and an on-site natural gas-fired plant that is currently mothballed, but is capable of generating another 4 megawatts, Sullo said.

That makes the site suitable for energy-intense uses like data centers. Sullo said he is currently speaking with two potential tenants affiliated with technology companies.

The two-story, masonry-sided building at 25 Holly Ave. was completed in 1985, according to assessing records. Sullo said it has had millions of dollars in upgrades in the past decade.

It could be fitted out for other uses, such as self-storage, if the search for technology-focused tenants does not pan out, Sullo said. 

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