Royal Oak Realty Trust Inc. recently acquired the property on Lucius Gordon Drive in Henrietta where Hammer Packaging Corp. is located. The $7.1 million deal is the real estate investment trust’s first acquisition in 2017.
Hammer Packaging, the former property owner, is to continue operating there and has an 11-year sale leaseback agreement with Royal Oak.
The site includes 104,000 square feet of space that houses Hammer’s corporate offices and some of its manufacturing operations. The business also has some 300,000 square feet of space in Gates at the Rochester Technology Park, which is not part of the property acquisition.
Hammer ranked 18th on the most recent Rochester Business Journal list of manufacturers and has roughly 525 workers. The multicolor packaging printer supplies the food and beverage, horticulture and household products’ markets.
With the deal, which closed Jan. 27, Royal Oak now owns 15 properties totaling some 1.5 million square feet in seven states, officials said. That translates to roughly $90 million of assets.
Daniel Goldstein, Royal Oak president and CEO, said the deal has been in the works for roughly one year. It is the firm’s sixth property acquisition in the Rochester area. Financing was provided by ESL Federal Credit Union.
“We’re pleased to be able to do business with Hammer Packaging,” Goldstein said. “It’s a very strong, successful local business.”
James Hammer, Hammer Packaging president and CEO, said the deal gives him the ability to re-invest more money back into the core business. The firm is in a growth mode and is adding this summer a new press that increases its capacity, he said.
Hammer Packaging ranked 86th on the 2016 Rochester Chamber Top 100 List of fastest-growing private companies.
Royal Oak is also in a growth mode and will continue to acquire properties throughout the year, said Bruce Bender, vice president. Focus will be on the Northeast, Midwest and Southeast.
Royal Oak was formed, with its subsidiary, Royal Oak Realty Trust LLC, in 2013 and 2014 under the names Buckingham Net Leased Properties Group Inc. and Buckingham Net Leased Properties Group LLC.
The names were changed to Royal Oak in December 2015.
The company focuses on office and industrial properties net leased to tenants under long-term absolute triple-net lease contracts. Absolute triple net leases are a type of net lease in which the tenant agrees to pay a monthly lump sum base rent as well as the property taxes, the property insurance and the maintenance.
Royal Oak’s most recent deal prior to the Hammer Packaging property was in December, with the $9.3 million acquisition of Miniature Precision Components Inc.’s headquarters and primary manufacturing facilities in Walworth, Wis., which is located in southern Wisconsin near Lake Geneva and roughly 70 miles north of Chicago.
Royal Oak also owns properties in Alabama as well as in Illinois, Michigan and Ohio.
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