The properties were constructed by Campanelli, a Braintree, MA-based real estate development and investment firm, in 1997 and fully leased to the Boston-based Gillette Co. for use as its North American packaging facility and Eastern distribution center. An adjacent parcel, also leased to Gillette, was included in the transaction.

Intercontinental, a Boston-based investment advisor and developer, purchased the assets for its third investment fund, IREIF III, a $350-million equity fund. "Modern, well-located warehouse buildings with a tenant such as Gillette are very rare," says Paul L. Palandjian, president of Intercontinental. "This purchase fits well with our fund's objective of assembling a $1-billion portfolio of high-quality properties with dependable income."

Daniel DeMarco, a partner at Campanelli, notes that a sale of these assets was a strategically sound move for his company at this time. "The combination of historically low interest rates and abundant capital seeking stabilized assets with credit tenants made it an ideal time to sell," he says.

Trammell Crow Co.'s investment sales team of Jim McCaffrey, Peter Joseph, Chris Phaneuf and Jordan Berns emphasizes that competition for the assets was strong. "This type of opportunity is on everyone's target list," says Joseph. "Campanelli Cos. did a great job of developing the properties and creating a lot of value. Intercontinental will enjoy stable income from a credit tenant in a market where modern warehouse facilities are in high demand."

Lease rates for industrial space in the area are about $6 per sf. The area's availability rate for industrial space is about 13%, according to Spaulding & Slye Colliers' most recent statistics as compared with an availability rate of 33% for the office market in the area.

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