STAG Capital Fund III Makes First MA Buy

(Read more on the industrial market.)

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.