Stamford office building sells for $13.5 million
A home construction business that has operated in the region for three generations has purchased a Stamford office building with plans to move its growing operations from New Canaan.
New Canaan-based Hobbs Inc., which has its headquarters at 27 Grove St., bought a 63,000-square-foot office complex at 30 Buxton Road in the north end of Stamford, where it plans to relocate its business and its 30 employees. The purchase price was $13.5 million.
The 60-year-old business will occupy 12,000 square feet at the building -- about the same size as its space in New Canaan, property it owns and has put on the market, according to Scott Hobbs, president of the company, which he co-owns with his brother, Ian.
The company's 60 other employees in the field and at offices in New York City and Bridgehampton, N.Y., will not be affected.
The new space provides a better office layout, Scott Hobbs said, commenting that the arrival of Hobbs will "pretty much fill the building."
"We looked all around New Canaan, where we've been 60 years," Hobbs said. "Buxton Farms is a very appealing building for people in New Canaan. It's 10 minutes from New Canaan on the Merritt and by back roads."
The property also has a solid tenant mix, and Hobbs said he and his brother are canvassing tenants about their plans.
"We're figuring out what everyone in the building wants," he said.
Constructed in 1971, the building was renovated in 1997. It is 87 percent occupied by 14 tenants, ranging from medical offices to the financial industry.
The property is ideally suited for the business, said Cory Gubner, president and CEO of Stamford-based RHYS Commercial, a commercial real estate firm that brokered the deal between Hobbs and White Plains, N.Y.-based GHP Office Realty.
The seller was GHP Buxton. Principals of GHP Office Realty and a group of private investors bought the property in 2007 for $8 million, according to Andrew Greenspan, principal in GHP Office Realty, the building division of Houlihan-Parnes Realtors.
Ted Grogan, senior vice president of RHYS, and Greg Romano, vice president, represented RHYS.
"It's a great office building in a great location -- right off exit 35 on the Merritt Parkway," Gubner said. "It was an off-market deal, which we identified on behalf of the purchaser. They were looking for an asset to buy and occupy. We have a relationship with GHP. We called them."
"It was a fair price, given that the building is largely occupied," Gubner said, adding that the office market is starting to see interest from investors, following in the foot steps of the retail and multifamily building markets. "There aren't a lot of retail or apartments (on the market)."
He predicted that over the next few months there will be more transactions in Greater Stamford.
RHYS is marketing the New Canaan property for Hobbs, which expects to select a prospective buyer from offers it receives by the second week of October, Scott Hobbs said.