"The time has come," one source says of the move by Finard Properties LLC, whose principals developed the trio of buildings between 1980 and 1984 while known as Finard & Co. Founder William Finard and son Todd Finard left the latter company in January to launch Finard Properties LLC, while Finard & Co. was renamed KeyPoint Partners LLC and taken over by Robert Lemons and Mark Becker. Both Finard Properties LLC and KeyPoint Partners are headquartered at One Burlington Woods.
Calls to William Finard and JLL's Capital Markets Group were not returned by deadline, but an offering sheet obtained by GlobeSt.com reveals that the marketing campaign has already commenced. JLL brokers involved in the sale include Michael Smith, Scott Jamieson, Cappy Daume, Gail McDonough, James Koury and Sean Keaney.
The sheet places the current park occupancy rate at 91%. An asking price for the complex is not being established, allowing the market to set the pace, but one source estimates the park will trade for at least $50 million. "The sky is the limit these days," says the source, referring to the white-hot investment climate in which Burlington Woods Office Park is being offered. The source pegs the likely sales price as being in the $200-per-sf range, which would result in a mark of around $57 million.
Burlington Woods Office Park should attract attention due to its solid location adjacent to both Routes 3A and 128, says the source, plus a strong tenant roster that features such companies as H&R Block, Symantec and Soundbite Communications. Most of the vacancy is in One Burlington Woods, a 114,000-sf building that is at 76% occupancy. Two Burlington Woods, the smallest of the trio at 27,000 sf, is fully occupied, while 91% of the 148,000-sf Three Burlington Woods is occupied.
Burlington's office market struggled to begin the decade, with vacancy rates soaring above 30%, but the improving economy has sparked a rebound during the past two years. Meredith & Grew puts the vacancy rate for the Route 128 Northwest office market at 21.3%, giving it the second highest vacancy of all submarkets along that major thoroughfare. Even so, the investment sales market has managed to draw plenty of interest, as evidenced by last year's sale of 5 Wayside Rd. in Burlington for $82.3 million, and the disposition of 25 Burlington Mall Rd. for $55 million in 2005. Twenty-Five Burlington Mall Rd. is located right next to Burlington Woods Office Park.
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