Leggat McCall Pays $12M for Northborough Building

NORTHBOROUGH, MA-Leggat McCall Properties has acquired a 211,600-sf manufacturing and warehouse facility here. The $11.5-million trade gives the real estate firm a fully rented--but currently unoccupied property--with four years remaining on the lease term.

Wayne Spiegel, executive vice president with NAI Hunneman Commercial, tells GlobeSt.com that about five investors bid on the 11 Forbes Road property but it was the Boston-based Leggat McCall that won out because of its reputation for closing the deal."They had the most reliable terms and they convinced us that they wanted the building and would close without re-trading the price after due diligence." Spiegel notes that in today's competitive market, investors are increasingly bidding up properties and then lowering their offers once into the due diligence phase.

Spiegel says the buyer was attracted to the property because of its high-ceiling space and location near Routes 290 and 495, a popular area with industrial and office users. "They felt that some of the lower ceiling buildings were becoming functionally obsolete. It was also an opportunity for them to buy a building with four years left on the lease and have plenty of time to re-lease the building."

For the money, Leggat McCall acquired a high-bay, fully air conditioned facility with 160,000 sf of single-story warehouse and 50,000 sf of two-story office and R& D space. Built in 1988 on 19.3 acres of land, the property is fully leased for the next four years to Graybar Electric Co., which vacated the building some time ago.

"This offers expansion potential as well as future upside from re-leasing," says Christine Stone, partner at Leggat McCall, noting that the location is popular among industrial and office users. Spiegel and David Ross, also an executive vice president with NAI Hunneman Commercial, along with associate Noah Hano represented the seller, 1919 Leavit Trust. NAI Hunneman Commercial also procured the buyer.