"It has a good, solid tenant roster," says Legacy PresidentMichael Price, whose firm has now completed two acquisitions afterearlier paying $7.3 million for a26,000-sf medical office building in Framingham, as reported byGlobeSt.com. Occupancy at 6 Merchant St. has traditionally stayedat full capacity, according to Price, explaining that the structurecaters to tenants needing 4,000 sf or less, a popular sizerequirement for the area. The first lease rollover will not occuruntil 2010, says Price, who expects upside from rental accretionwhen space ultimately frees up at the 20-year-old structure.


Besides the stability and steady cash flow, Price says he wasattracted to the property by its overall condition and stronglocation. "I like this type of product," adds Price, expressing adesire for similar flex/R&D opportunities, should they comeavailable. But while Legacy is eager to make investments across abreadth of property types, the pipeline of product is "shallow" atpresent, relays Price, who does have two other buildings underagreement.


Many sellers are unwilling to acknowledge a shift in the lendingarena, maintains Price, making deals that do come to market harderto finance. Price cites a lengthy track record and pastrelationships with lenders for getting the needed backing for thelatest assets, as well as prudent bidding. "The deal has to makeeconomic sense," he says. TD BankNorth financed the Framinghampurchase, while Cambridge Savings Bank funded Legacy's Sharonacquisition. Owned by Merchants LLC, an entity formed by localinvestors Ralph Darling and James O'Neil, the building was marketedby Patrick Cavanagh and the capital markets group of CB RichardEllis in its Boston office. In a related move, Price says thatsister-company Eastport Real Estate is being retained as manager of6 Merchant St.

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