Cory R. Gubner, president of Chase Commercial Real Estate LLC/TCN Worldwide, says that he does not believe any commercial office sale in downtown Stamford ever reached the $300 per sf level until the sale of 35 Sixth St. closed in late January. Gubner, who was the sole broker in the deal, reported the sales transaction between seller Seaboard Realty Corp., and Brunswick Enterprises, the buyer.
He explains that Seaboard Realty, an insurance concern, had occupied the building until the company was sold last year. The new owner, Brunswick Enterprises, has moved its software business--Norbert Technologies--into the space at 35 Sixth St.
"The seller knew he had a one of a kind building and he was looking for a buyer who would share his thought process and sense of value and we found him," Gubner says. Seaboard Realty significantly upgraded the building prior to the sale. The property features lavish workstation areas and a host of amenities including some public areas adorned in marble.
"Fully knowing our client's intentions to set a sales record, we marketed the building to those individuals who could buy the building and use it for their own business," Gubner adds. "We needed the perfect fit and after what amounted to a year-long process, we found it."
He relates that the sales price is not indicative of current market conditions in downtown Stamford. In fact, office vacancy rates have risen recently, office leasing activity has fallen and investment sales on commercial office space have slowed.
At present, office building owners are holding firm on prices since occupancy rates are still high, despite some softness in leasing of late. Prospective buyers are factoring in lower leasing activity in their bid prices, therefore, Gubner notes, "There is a disparity that now exists between the bid and ask price."
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John Jordan
John Jordan is a veteran journalist with 36 years of print and digital media experience.
