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AMESBURY, MA-After making investments worldwide, STAG Capital Partners has acquired an asset in its backyard, with the Boston-based firm purchasing 37 S. Hunt Rd. for $5.7 million. The 78,000-sf industrial property is vacant, but a full-building lease will continue to generate income through July 2010. That was a key element driving STAG's interest, acknowledges VP Ted Norberg, who estimates the coming year alone will generate $880,000.

"The yield is a compelling story," Norberg tells GlobeSt.com. The tenant, Andrew Corp., carries the credit strength to satisfy STAG's desire for stability, he explains, with 37 S. Hunt Rd. offering enough term to find a replacement tenant. The rent of $11.30 per sf is well above the norm for northern Massachusetts. According to Jones Lang LaSalle, the average asking rate for industrial space in that area is $7.36 through Q3.

"It's a win for us," Norberg says. The building is the first acquired in Massachusetts for STAG's Fund III, an investment vehicle that now has 40 assets and 6.1 million sf in 19 states. Norberg represented STAG on the Amesbury deal, while CB Richard Ellis SVP Patrick Cavanagh negotiated on behalf of the seller, Amesbury based RLS Realty. STAG did not acquire an adjacent 4.5 acre parcel that could deliver another 45,000 sf of space. It is unclear what the status of that opportunity is, with Cavanagh not responding to inquiries by press deadline. That and the six-acre parcel acquired by STAG in the 37 Hunt Rd. purchase are situated just off Interstate 495 near the New Hampshire border and Interstate 95, a location that has led to several industrial buildings being constructed in the otherwise rural stretch.