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November 12, 2004
Assets Appreciate as Downtown Worcester MA Undergoes Gentrification
HAMDEN, CT - Michael Belfonti, President and CEO of Belfonti Associates, LLC, announced today the sale of its Worcester, Massachusetts, portfolio for over 14 million dollars by several Belfonti-related entities to the Mayo Group of Boston, Massachusetts.
All properties in the portfolio are located on the Commons in downtown Worcester and represent approximately 400,000 square feet of residential, office, and retail space. The transaction closed on November 12, 2004.
"When we acquired our first property in Worcester back in 1999, the area lacked any real vibrancy," said Belfonti, "but we recognized the potential for growth." According to Belfonti, the ongoing gentrification of the downtown area made the Worcester portfolio a prime investment candidate for his company, which specializes in turn-around situations.
Belfonti believed that the demand for housing in the downtown Worcester area would increase as the gentrification process moved forward and that his group's properties would attract residential and commercial tenants. In response, Belfonti aggressively pursued acquisitions in the area and followed each acquisition with major renovations.
In June 2004, subsequent to Belfonti's acquisitions and renovations, Berkeley Investments, Inc. of Boston joint-ventured with Starwood Capital of Greenwich, Connecticut, to purchase Worcester Common Outlets from CIGNA Investments Inc. and to redevelop the one million square foot outlet mall into a first-class mixed-use development.
Why leave an area that is experiencing so much growth? Belfonti replied, "Now is the time to capitalize on the appreciation of these assets while still leaving economic upside for the new developer. Our current strategy is to move out of smaller markets and to seek acquisitions in larger MSAs nationwide."
Bob Tito, executive Vice President and principal of Hunneman Commercial, represented both buyer and seller.
Belfonti Companies, LLC Real Estate Development and Investment, with a central office located in Hamden, Connecticut, actively and aggressively pursues opportunities throughout the United States and internationally.