A group of investors has purchased a 187,992-square-foot industrial facility in Windsor for $13 million, attracted by its established tenant and the possibility of developing unused portions of the nearly 30-acre property. The buyers say the site offers dependable rental income today and room for additional industrial growth over time.
Key takeaways
- The 600 Day Hill Road property sold for $13 million.
- Spencer Turbine Co. fully occupies the 1975 industrial building.
- About 40% of the 29.69-acre site is considered excess land.
- The buyers financed part of the acquisition with an $8.9 million mortgage.
- Potential future development is expected to focus primarily on industrial uses.
The acquisition combines a stable operating asset with longer-term development potential, a strategy increasingly used by industrial property investors seeking additional value from large suburban sites.
Established tenant supports the investment
Spencer Turbine, a Windsor manufacturer of industrial blowers, vacuum systems and gas-pressure boosters, has about nine years remaining on an absolute-net lease. Under that arrangement, the tenant is generally responsible for property expenses, including maintenance and structural repairs.
Investors said Spencer’s long-term presence and specialized operations make it likely to remain at the facility. Relocating the company would require significant investment in equipment and infrastructure, providing the new owners with a measure of income stability.
The investors also believe the building’s rent is below current market levels, creating a possible opportunity to increase revenue in the future, whether through a lease renewal or other restructuring.
Unused land creates development opportunity
The industrial building sits on approximately 29.69 acres, and investor Brian Ker estimates that roughly 40% of the property is underused or available for potential development. The ownership group has already explored preliminary concepts with an architect.
Regal Ventures’ David Lawrence said the group’s primary interest is in adding industrial development. The investors view the Day Hill Road corridor as favorable because other underutilized industrial sites in the area have been redeveloped in recent years.
Any construction would depend on planning, approvals, market conditions and the practical needs of the existing tenant. The owners have described the opportunity as a long-term way to monetize land that is not currently contributing fully to the property’s value.
Diverse investor group backs purchase
The ownership group includes entities connected to Devli Real Estate, Regal Ventures, Snowball Developments, Florida investors Joseph and Sharon Anderson, and investor Samer Batraki.
An entity tied to Christopher and Mark Devli holds the largest share, at 52.51%. Regal’s affiliated entity owns 20.2%, while an LLC associated with the Andersons holds 21.04%. Batraki and Snowball hold smaller interests of 3.27% and 2.98%, respectively.
The acquisition was partly financed through an $8.9 million mortgage from Valley National Bank. The property previously sold for $10.43 million in 2018.
Investors expand Connecticut industrial portfolios
For Snowball Developments, the transaction adds to a series of Connecticut industrial acquisitions involving older buildings with excess land. The company had previously bid on the Windsor property and later joined the deal after being introduced to Regal through a Columbia University real estate connection.
The purchase is Regal Ventures’ first industrial investment in Connecticut. The firm, established in 2019 from a family office with decades of New York real estate experience, has been expanding beyond its traditional retail focus into industrial properties in Pennsylvania and Virginia.
The partners said they may pursue additional investments together, although they are not currently considering another joint acquisition.
- Investors buy Windsor industrial property for $13M, eye development of excess land, Hartford Business Journal.