(Read more on the industrial market.)
STOUGHTON, MA-Shoe giant Reebok International has sold its 330,000-sf distribution center here. An affiliate of Lincoln Property Co. paid $18.5 million for the asset at 300 Technology Center Dr. Reebok will be in the 20-year old building until September 2009.
Efforts to contact the parties involved in the just-completed sale were unsuccessful, with calls to Lincoln, Reebok and JLL not returned by press deadline. The property was put on the market earlier this year. The sales price equates to about $56 per sf.
Despite its age, 300 Technology Center Dr. has many features found in more modern industrial facilities, including clear height to 34 feet, 42 loading docks and upgraded fire and safety systems. The 35.5-acre site offers the potential for ancillary development as well, according to brokers at Jones Lang LaSalle, whose Boston office negotiated the sale for Reebok and also procured the buyer. Retail is considered a prime possibility, says JLL, which notes that the surrounding area has evolved recently from strictly industrial to a retail destination. Such brands as Bassett, BJ's Wholesale Club and Kohl's Department Store are all abutters of 300 Technology Center Dr. Another developer has proposed a multifamily complex on a nearby parcel.
The value of 300 Technology Center Dr. for industrial uses was also considered a key attraction for investors. Located just off Route 24, the building is situated in suburban Boston's largest industrial submarket at 20.9 million sf as tracked in Jones Lang LaSalle's third quarter industrial market survey. That and the adjacent Interstate 495 South submarket, which has 11 million sf, encompass nearly half of the 62.2 million sf industrial market in JLL's review. The South is slightly above the overall vacancy rate of 17.4% at 17.5%, whereas Interstate 495 South is down to 14.2% after a robust year, registering positive net absorption of 537,000, including plus-155,000 sf in the third quarter. The South market did not fare as well, having seen negative net absorption of 201,000 sf to put the rate at just 19,000 sf positive for the year, says JLL.
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