Hampshire acquires shopping centre for $240m fund

The New Jersey-based private equity real estate firm has added a Milford, Connecticut strip mall to its high-net-worth fund, The Hampshire Generational Fund. The deal was valued at about $30m with a reported cap rate of 7.5%.

The Hampshire Companies has added a shopping centre in Milford, Connecticut to its $240 million high-net-worth fund, the Hampshire Generational Fund.

The 180,051-square-foot Milford Plaza was bought in a joint venture with Long Island, New York-based retail real estate firm Stonemar Properties.

According to data from Real Capital Analytics, the strip mall was acquired for about $30 million, or $168 per square foot, with a 7.5 percent cap rate. Among the major tenants are Shop Rite supermarket, Bob's Stores, UPS, Payless Shoe and Blockbuster Video. The property, built in 1958, was bought from Heyman Properties.

The Hampshire Generational Fund closed last year on $240 million of equity commitments from high-net-worth individuals.

The deal follows on from Hampshire’s latest industrial purchases, including a 91,388-square-foot industrial property located in the Mahwah Technical Park, New Jersey. The property was acquired through the Generational Fund for an undisclosed sum from EWE Warehouse Investments.

Earlier this year, Hampshire said in a statement it had acquired 37 buildings in 2007, including a mix of industrial, retail and office properties in the Northeast and Mid-Atlantic areas of the US. The company also secured 80 leases totaling more than 2.4 million square feet during 2007.

Hampshire also manages two institutional funds, the $235 million Hampshire Partners Fund VI and the $350 million Hampshire Partners Fund VII.