(To read more on the industrial market, click here.)

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SHREWSBURY, MA-The 400,000-sf R&D facility at 334 South St.has traded hands in less than a year, delivering a 34%-profit of$9.4 million to the seller, a joint venture between Boston-basedCrossHarbor Capital Partners and Suffolk Advisors. The buyer isWilmington, MA-based Charles River Laboratories Inc.

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According to public records, Charles River paid $27.4 million,or $68.50 per sf, for the building. GlobeSt.comreported that the CrossHarbor/Suffolk JV acquired the propertyfrom Hewlett Packard's surplus real estate for $18 million, or $45per sf, in November 2004, despite an earlier asking price of $30million for the asset.

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Principals in the Boston office of Spaulding & Slye Colliersnot only represented Charles River in this acquisition, but alsopreviously procured the CrossHarbor/Suffolk JV and represented theseller in the 2004 Hewlett Packard transaction. The building hasremained vacant since that transaction. This time around, David L.Pergola, EVP, and SVPs David J. Pergola and John A. Carroll III ofthe Boston office of Meredith & Grew, representedCrossHarbor/Suffolk.

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The Spaulding & Slye principals who spoke for Charles Riverare William D. Bailey and Matthew P. Dwyer, along with SVP PhilipDeSimone. Acknowledging it represented a nice profit for theseller, Dwyer tells GlobeSt.com it was also a good deal for thebuyer. "User/buyer sales for buildings of lesser quality here areselling at higher per-sf-prices," he says, adding, "it would costat least twice the price to replace this with a comparablefacility."

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Although Charles River may consolidate some existing operationsin the building, the acquisition represents an expansion for thebuyer, Dwyer says. Charles River, a global life sciences companywith 8,000 employees worldwide and clients in 50 countries, willuse the facility for pre-clinical services for clients working tobring new drugs to market. The building "allows us to stay ahead ofthe market demand for strategically outsourced pre-clinical work …for the next few years," says Jim Foster, Charles River's chairman,president and CEO, in a statement. He also said it gives hiscompany "flexibility to pursue long-term space arrangements (withclients) to use our space in lieu of constructing their own." Callsto Meredith & Grew were not returned by deadline.

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