"It's a great deal for the market," says Phil Burgess of BurgessProperties, who represented the tenant in the transaction. Thelease represents growth for the erstwhile Palmer Manufacturing, aMalden-based company recently acquired by PPH. The company, whichmanufactures aircraft engine components, has been a fixture inMalden for decades, and Burgess says the firm had hoped to remainas close as possible to the main facility in Malden, which willremain open. Availability was limited and pricing was too rich inthe inner suburbs, to meet the client's requirements, explainsBurgess, leading to the Peabody option.

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Burgess is familiar with One Second St., having last year placedanother tenant there that is leasing 22,000 sf. "It's awell-managed, physically attractive building that works well fortenants," says Burgess, who represented PPH along with BurgessProperties broker Stephen Nohrden. Atlantic Management wasrepresented by CB Richard Ellis principals David Corkery, DavidConnolly and Mark Reardon, the building's exclusive leasingagents.

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One Second St. is situated on a 9.8-acre parcel and contains140,000 sf of warehouse space and a 17,000-sf block of mezzanineoffice space. In addition to multifamily and retail properties,Atlantic Management owns more than two dozen industrial and officebuildings throughout Greater Boston, including the prominentLexington Technology Park on Route 128 in Lexington that recentlysecured Shire Pharmaceuticals of Cambridge for more than 400,000sf.

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A year-end review of the suburban Boston industrial market showsa difficult 2007 for Route 128 North, which posted negative netabsorption of 420,000 sf, including minus 90,000 sf in the finalquarter. Encompassing 21 million sf of the 51.2-million-sf MetroNorth region, Route 128 North's vacancy rate of 11.3% is stillbelow the market average of 13.5%, and has an average asking rateof $9.39 per sf, second highest among 11 submarkets tracked in theCBRE review and ahead of the overall average of $6.97 per sf.Although he would not discuss specifics of the terms at One SecondSt., Burgess indicates that the tenant was able to strike a"competitive" rate given the quality of the space.

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