Charles Schreiber, CEO and chairman of KBS REIT, says the property was a strong buy for the publicly offered, non-traded real estate investment trust. The building was the REIT's fifth acquisition and its first in New England.
"As a core asset that is well-leased with strong in-place rents and no near-term lease rollover, this property meets our strict criteria," Schreiber says in a statement. "At 100% occupancy with committed credit tenants, 825 University Ave. is a strong investment for us." Schreiber could not be reached for further comment.
"In 825 University we saw an opportunity to purchase a recently renovated asset that was fully leased on a long-term basis to two quality tenants," says Shannon Hill, senior vice president and acquisition manager for KBS REIT. The cap rate on the building was about 7.5% he says.
Situated on 18.81 acres, the two-story building was constructed in 1980 and renovated in 2004 and 2005 when the former owners added about 22,000 sf to accommodate tenant Instron Corp. Instron currently occupies 110,000 sf of the building under a long-term lease. The remainder of the building is occupied by LTX Corp., also under a long-term lease.
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