Around the State – Central JerseyCLINTON Heritage Capital Group LLC has some new toys to play with. The Ridgewood-based real estate investment firm announced last week that it has snapped up a 2.2 million-square-foot portfolio comprised of three distribution centers from Pittsfield, Mass.-based KB Toys. The $77.5 million deal is a joint venture with Barrow Street Capital LLC, a Stamford Conn.-based real estate investment manager, and Greenfield Partners LLC, a Norwalk, Conn.-based management firm.
KB Toys has leased back the properties, which are in Clinton; Glendale, Ariz.; and Montgomery, Ala.; for six months. Following the leaseback period, the toy retailer will occupy 480,000 square feet at the 730,000-square-foot New Jersey building and 375,000 square feet of the 620,000-square-foot Arizona property. The Alabama facility will be vacated.
KB Toys sold the properties to free up cash and shed excess space in its distribution network, according to Jeffrey Greenberg, a Heritage Capital principal.