WESTBOROUGH, MA—W. P. Carey Inc., a New York City-based REIT, has purchased an office building that is under a long-term net lease with Bose Corp. at the Westborough Technology Park here for $47 million from Columbia Property Trust, Inc. of Atlanta.
The building at 9 Technology Drive totals 250,813 square feet and is fully leased to audio systems manufacturer Bose for a term of 11 years.
Gino Sabatini, managing director and co-head of global investments at WPC, says of its purchase just outside of Boston, "The Bose building is a well-located real estate asset leased to a quality tenant; the 11-year lease and recent investment by Bose affirms their commitment to the facility. The transaction also demonstrates W. P. Carey's ability to work with a variety of sellers. Because of our long-term income and cash flow focused strategy, we are an attractive source of liquidity to owners, developers and investors with shorter term investment horizons, providing them with timely access to capital for execution of their reinvestment strategies."
Over the past 18 months, Bose has invested in the facility to construct a state-of-the-art film production space and sound studio used for Bose's commercial marketing efforts, W.P. Carey states.
Sabatini notes that as core Boston submarkets become saturated, some tenants have begun to search for space in suburban Route 128 and 495 locations, where he says they can secure higher quality real estate with lower rents and good accessibility. “The 495 West/Mass Pike West submarket has demonstrated an increasing level of stability in recent years, along with declining vacancy,” he says. “Additionally, the submarket is home to a very large base of high-technology space and financial firms, including BNY Mellon Wealth Management, Integrated Genetics, PF PC, Inc., Amica Mutual Insurance, Astra Zeneca and E Clinical Works."
Nelson Mills, president and CEO of Columbia Property Trust, says of his firm's disposition of the property, “The attractive pricing for this suburban asset—resulting in part from the recent lease extension with Bose Corporation—offered a compelling opportunity to redeploy the capital to our pipeline of investments in multi-tenant, urban market assets.”
Continue Reading for Free
Register and gain access to:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
John Jordan
John Jordan is a veteran journalist with 36 years of print and digital media experience.
