17 Berkshire Road – Newtown

Stabilized Freestanding Office / Flex Investment – Sandy Hook (Newtown), CT

$1,350,000 | 7.5% CAP (Based on 2026 NOI) | Long-Term Lease with Escalations | 1031 Exchange Friendly

Investors seeking a well-structured, stabilized single-tenant asset in the heart of Sandy Hook will find 17 Berkshire Road to be a highly compelling acquisition. This freestanding office/flex property combines predictable income, contractual rent growth, and strong tenant commitment in one of Fairfield County’s most supply-constrained commercial corridors.

The property contains approximately 7,500 rentable square feet and is situated on 1.01 acres with 151 linear feet of frontage on Berkshire Road (Route 34), a key east–west artery connecting Newtown and Oxford. Built in 1988, the building has been well maintained and thoughtfully adapted for modern commercial use.

Building & Site Overview

The building offers a flexible configuration that blends professional office space with a functional rear flex/warehouse component. The office area includes multiple private offices, a reception area, and three handicap-accessible restrooms, making it suitable for a wide range of professional and client-facing uses.

The rear flex space—originally designed for industrial use—features three overhead doors, propane gas heat, and 400-amp, 208/120-volt, 3-phase electrical service, infrastructure that is increasingly difficult to find in smaller office properties. The entire building is fully HVAC-served with central air conditioning and is supported by a Generac standby generator, a notable reliability feature that enhances operational continuity.

The site provides approximately 36 surface parking spaces, offering an excellent parking ratio for staff, clients, and visitors. Visibility, access, and signage exposure along Route 34 further strengthen the property’s long-term leasing appeal.

Tenant & Lease Profile

The property is 100% leased to a single-tenant sports training and wellness company operating under a long-term lease executed in June 2024, with rent commencement in September 2024

17 Berkshire Commercial Lease E…

. The tenant has made substantial capital improvements to the building, tailoring the interior to support its specialized training, wellness, and performance-focused operations—demonstrating a meaningful long-term commitment to the location.

Key lease highlights include:

• Initial Term: 5 years (through September 2029)

• Renewal Option: One (1) additional five-year term

• 2026 Base Rent (Year 2): $125,531 annually

• Annual Escalations: Approximately 3%

• Expense Structure: Tenant responsible for utilities, operating expenses, maintenance, snow removal, landscaping, and HVAC servicing (Modified Gross with strong expense pass-throughs)

• Security Deposit: Two months’ base rent

• Personal Guaranty: Full personal guaranty by the tenant principal

• Right of First Offer: Tenant granted ROFO in the event of a sale during the lease term

The lease structure delivers durable income with built-in growth, limited landlord responsibilities, and enhanced credit protection—an attractive combination for private investors and 1031 exchange buyers.

Valuation & Investment Metrics

The offering price of $1,350,000 reflects a 7.5% capitalization rate based on the 2026 contractual rent, providing buyers with a forward-looking income stream rather than reliance on introductory rent. This approach aligns valuation with stabilized operations and contractual rent growth already in place.

As rents continue to escalate annually, the buyer benefits from organic NOI growth without additional capital investment, further strengthening long-term yield.

Zoning & Future Flexibility

The property is located within Newtown’s Business & Professional Office (BPO) Zone, allowing office use by right. Additionally, one- or two-family residential use may be permitted by special exception, offering long-term flexibility should market conditions or ownership objectives evolve.

Location Overview

Sandy Hook is known for its historic character, strong community identity, and accessibility. The property is located just minutes from Interstate 84, providing efficient access to Danbury, Waterbury, Hartford, and the Greater New York metropolitan area. Planned infrastructure improvements at the Route 34 / I-84 interchange further enhance long-term accessibility and value.

Investment Summary

17 Berkshire Road offers investors a rare opportunity to acquire a stabilized, single-tenant freestanding office/flex asset with:

• Strong lease structure

• Forward NOI growth

• Meaningful tenant investment in the building

• Excellent regional access

Closing to be coordinated with the Seller’s completion of a 1031 Exchange.

For additional information or to arrange a private tour, please contact J. Michael Struna at 203-733-1290 or  Chris Cosio at 203-524-8635.