JV Acquires 761,000-SF Industrial Complex for $27M

The complex is located on 72 acres close to Route 128 and houses a distribution site. That distribution site has three buildings with two of them-- 430,000 and 200,000 sf each--suitable for modern warehouse and distribution needs, while the third 100,000-sf building is suitable for smaller tenants. The buildings were used by Stop & Shop for grocery supplies storage, produce storage and general distribution storage, respectively.

Stop & Shop plans to lease back the buildings from the new owner while it is constructing its new 1.3 million-sf distribution and freezer facility on 150 acres in Freetown, MA. The deal was constructed to enable Stop & Shop to slowly relocate to its new site while providing revenue to the new owners and time for them to search for new tenants.

Jim Nicoletti, executive vice president and partner, Steve Clancy, executive vice president, and David Corkery, first vice president, of CB Richard Ellis/Whittier Partners, represented Stop & Shop in the transaction and procured the buyer.

Nicoletti notes that the larger buildings meet modern warehouse specifications. "These are very good buildings and are perfect for storing a variety of products and distributing them across New England," he points out.

While the area's office market was hit hard by the recent recession, the industrial market managed to maintain relatively low vacancy rates. According to Cushman & Wakefield's most recent statistics for Boston, the warehouse and distribution sector continues to outperform the high-tech sector. The report indicates that while vacancy rates were at 15% for warehouse and distribution facilities, they were at 22% for high-tech space. Much of the vacancies in the warehouse and distribution sector come from older space as there continues to be a demand for modern, up-to-date space. Most industry analysts predict that as the economy improves and the retail market begins to pick up steam, the industrial market will fare even better with retailers scrambling to find space to store their wares. Lease rates for this deal were not available, but the lease rate for similar type of space is about $6 per sf.Stop & Shop has been active in the Massachusetts real estate environment. In early September, Stop & Shop sold its 16,000-sf building at 200 Boston Rd. to Billerica Corner LLC for $1.6 million.