BCIC sells incubator building to private firm
NEAL GOSWAMI, Staff Writer
Tuesday, October 30, 2007

BENNINGTON — The Bennington County Industrial Corp. announced Monday that it has closed on a deal to sell its building to a New York-based property management group for $730,000. The 155,000-square-foot building on Water Street in North Bennington houses about 28 businesses and tenants that use the building for manufacturing, commercial, office and studio space, according to BCIC Executive Director Peter Odierna. He said BCIC had owned the building since 1978, when it was purchased for $400,000. The building has served as an "incubator" for small or start-up businesses by offering low lease rates to companies in their infancy, said Odierna. He said BCIC will continue to have its office located inside the building for the near future. "Our commitment is to stay in the building to ensure that the transition goes smoothly," Odierna said.
         HRH Capital Management
   The buyer, HRH Capital Management, headed by Roderick Williams, is based in Westchester County, N.Y. Williams said he is the public face of a small group of investors, including a resident of Bennington County, that makes up HRH. The group intends to keep all of the building's current tenants initially and look into making some renovations, Williams said. "We don't plan to change a whole lot, certainly not right away," Williams said. "Certainly parts of the building aren't in great shape."
   Williams said he and his fellow investors have heard a lot about the area's lack of affordable housing and will be looking into the possibility of creating some residential apartments in the building. "The biggest discussion is going to be residential," he said. "We're certainly open to building some apartments if it makes sense. I don't know right now if that makes sense."
   The group may also look into creating space for a café or gallery space where local artists can display their work, according to Williams. "That building has loads of space. Can't we do something?" he asked.
   The sale of the building also means more revenue for Bennington and North Bennington. Because BCIC is a not-for-profit organization, the building has previously been taxed based on its percentage of occupancy, according to Linda Lee Hayden, assistant to the assessor for Bennington. Property taxes will now be assessed on the full value of the property.
   The property had been on the market since early 2006. BCIC had received three offers since then before agreeing to sell it to HRH for $730,000, said Odierna. "Based on appraisals that have been done on the property in the last couple of years, that represents fair market value," Odierna said. "Certainly price was a contributing factor and HRH has made a commitment to make sure the transition is as smooth as possible, which was very important to us."
   BCIC's board of directors has not yet come up with a long-term plan on what to do with the money from the sale of the building, said Odierna. Purchasing new property will not be part of the plan, however, he said. "Exiting the property management business does free up a considerable amount of time for BCIC to focus on its mission," he said. "I don't envision us in any way shape or form reentering the property management business."
   Williams said HRH could be interested in additional property in the area but will be looking to focus on its new investment. "We'll invest in things that make sense. If we can find other reasonable priced properties then we'll look into it," Williams said. "We're not going to over-commit ourselves."