297 State Street
Introduction
Equity Industrial Partners (EIP), a prominent industrial real estate investment and development firm, embarked on a transformative journey when they acquired the property at 297 State Street, North Haven, CT in 2016. At the time of purchase, the property encompassed approximately 200,000 square feet of vacant space, offering immense potential for redevelopment and new leasing opportunities. The strategic vision of EIP, coupled with the growing demand for industrial spaces in the area, culminated in a series of successful lease agreements and significant property enhancements.
Initial Acquisition and Leasing Success
Upon the acquisition in 2016, EIP quickly set out to attract tenants for the vacant space. Red Thread and 1-800 Pack Rat occupied approximately 180,000 square feet of the property, laying the foundation for a vibrant industrial ecosystem. EIP executed a crucial lease agreement with Fulfillment Works for 198,927 square feet of the vacant space. To meet the specific requirements of the new tenant, EIP invested $2.3 million in white boxing the space, ensuring it was ready for Fulfillment Works' operations.
Expanding Leasing Horizons in 2022
As the demand for warehousing and fulfillment services surged, EIP identified an opportunity to further expand their leasing success at 297 State Street. In 2022, EIP secured an additional lease agreement with Stord (previously known as Fulfillment Works). Stord decided to expand into the vacant space previously occupied by 1-800 Pack Rat, bringing their total occupancy to an impressive 275,000 square feet.
Significant Property Enhancements
EIP's commitment to delivering top-notch industrial spaces extended beyond leasing agreements. The firm invested in a series of property enhancements to ensure the utmost functionality and efficiency for the tenants. The upgrades included a $1.5 million investment in Landlord Base Building work and Tenant Improvements (TI). Additionally, EIP allocated $400,000 for a roof replacement, $250,000 for asphalt paving, $100,000 for an upgrade of dock equipment, and $200,000 for an LED lighting upgrade.
Success Story: A Thriving Industrial Ecosystem
Through strategic leasing decisions and substantial property improvements, EIP successfully transformed 297 State Street into a thriving industrial ecosystem. The property's occupancy increased significantly, with tenants such as Stord occupying a substantial portion of the building. The investment in modernization not only attracted high-profile tenants but also bolstered the property's market value, showcasing EIP's expertise in industrial real estate development.
Conclusion
The case study of 297 State Street, North Haven, CT, exemplifies Equity Industrial Partners' prowess in industrial real estate investment and development. The acquisition, leasing success, and property enhancements have turned this once-vacant property into a prime example of a flourishing industrial space. With an eye for opportunities and a commitment to excellence, EIP has demonstrated its ability to revitalize properties and create thriving ecosystems for tenants, solidifying their position as a premier player in the industrial real estate market.
