November 3, 2007
Stamford Advocate
Antares continues push for property
By: Peter Healy

In its quest to control the bulk of South End real estate, Antares Investment Partners of Greenwich bought four office and retail buildings this week from longtime Stamford developer Frank Mercede & Sons Inc.

Antares paid $50 million, or about $203 per square foot, for the properties at 700, 850, 860 and 880 Canal St. The complex, known as Harbour Square, contains 246,785 square feet of office and ground-floor retail space on about 8 acres along the east branch of the Stamford Harbor.

Philadelphia-based Lubert-Adler Real Estate Funds and Goldman Sachs are its equity partners, and New Alliance Bank was Antares' lender for the purchase.

Frank Mercede & Sons bought 700 Canal St., a former wall coverings factory, in 1979. It purchased factory buildings at 860 and 880 Canal St. over the next few years and converted them into offices. Mercede built a four-story, 67,000-square-foot office building at 850 Canal St. in 2002.

Frank Joseph Mercede, company president and grandson of the company's founder, the late Frank Mercede Sr., said parting with the property after so many years was difficult.

"We felt it was the best decision for the family at this time," Mercede said. "Antares made us a tremendous offer."

He said Mercede headquarters will move in January to a company-owned office building at 1200 High Ridge Road in Stamford.

The Harbour Square complex has a marina and Stamford's only heliport. It is near Antares' Harbor Point redevelopment project, which includes former industrial properties once owned by Pitney Bowes Inc., Yale & Towne and others.

Harbour Square is 79 percent leased, according to Mercede.

"This is a great property with quality tenants that will only increase in value with our Harbor Point redevelopment effort," said James Cabrera, co-founder and managing partner of Antares, real estate company with office, residential, retail and hotel holdings.

"It's a strategic purchase," said John Goodkind, managing principal at the Greenwich office of New York City-based Newmark Knight Frank commercial real estate. "Time will tell if it was a bargain or whether it appears to be a fair price."

Tenants at Harbour Square include Eclisse restaurant and Cafe Caroline, RSM McGladrey Inc. consultants and accountants; Williams Trading, a hedge fund; Corporate Centres, an office suite facility; Prudential Connecticut Commercial Real Estate; Re:think Group advertising; the Antique Treasure shop; and the headquarters of United States Beverage LLC, which markets beers and other beverages.

Joseph Beninati, Antares' other founder and managing partner, said Antares will market Harbour Square as part of the 1.3 million square feet of office space it owns in Stamford rather than as a separate entity.

Asked about possible renovations, Beninati said, "We are going to develop a plan that will complement our other buildings in the South End."

In the South End, Antares and its equity partners own office buildings at 333 Ludlow St., 2187 Atlantic St., and 1 Dock St.

The company plans to redevelop 82 acres in the South End with stores, offices, housing, a hotel and public spaces.

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