First Hartford Profile
First Hartford Corporation and its subsidiaries engage in the purchase, development, ownership, management, and sale of real estate; and providing preferred developer services for two corporate franchise operators.
Segments
The company operates through Real Estate Operation and Fee for Service segments.
Real Estate Operation
This segment engages in the purchase, development, ownership, management and sale of real estate. The real estate, owned and/or managed by the company through various subsidiaries and joint ventures, is located in Connecticut, Delaware, Louisiana, Massachusetts, New York, New Jersey, Rhode Island, and Texas. Non-residential tenants are obtained through brokers and employed representatives of the company, by means of Industry Trade Shows, direct contacts with retail stores and other potential commercial tenants, and an occasional inquiry by potential tenants at its on-site offices. Residential tenants are obtained through advertisements and inquiry at on-site offices. The company’s real estate business is diversified by geographical locations, type of commercial property, and form of ownership or management. The only facilities the company owns and operates are a movie theater and a liquor store at one of its properties and a restaurant at another one of its properties. In all other cases, the tenants of the company’s properties are third-parties.
Fee for Service
This segment engages in providing preferred developer services to CVS Health (CVS) and Cumberland Farms Inc. in certain geographic areas. The company has an agreement with CVS to be a preferred developer in Texas within the Rio Grande Valley, Houston, and Western Texas (excluding El Paso and Austin), in New York within Long Island and portions of Rockland County, in Northern New Jersey, in majority of Connecticut, and in Louisiana. This is a fee for service agreement by which the company would locate a site, negotiate a letter of intent, prepare store development budgets, demographics, arrange traffic counts and submit for CVS Real Estate Committee approval. Once so approved, it would negotiate a purchase or lease of such property and obtain permits. The company would invoice 75% of the total fee when the property is purchased or leased, and a building permit is issued. Fees vary based on location and style of the store. A CVS pre-qualified third party contractor is selected who would work through the company. The company would manage the construction and administrate the contracts and payments. When a Certificate of Occupancy is obtained, it would invoice 15% of the total fee. After the store is opened and all the open construction items are completed, the company would invoice the final 10% of the total fee. Income is recognized as required services, as outlined in the development agreement, are completed. The entire process would take 1-3 years.
Cumberland Farms: The company is also a developer for Cumberland Farms Inc. within Connecticut, New York, and Western Massachusetts. Its scope of work is less than the CVS arrangement above as the company is not involved in the construction management of the store. This is a fee for service agreement by which the company would locate a site, negotiate a letter of intent, prepare store development budgets, demographics, arrange traffic counts and submit for Cumberland Farms Real Estate Committee approval. Once so approved, the company would negotiate a purchase or lease of such property and obtain state and local approval and associated permits for construction. The company would invoice 100% of the total fee when the property is purchased or leased and a building permit is issued. Income is recognized as required services, as outlined in the development agreement, are completed. The entire process would take 1-2 years.
History
First Hartford Corporation was incorporated in Maine in 1909.
