Meritage Affiliate Acquires Two Suburban Office Buildings in $19M Buy

In a $9-million acquisition, the Scarsdale, NY-based real estate firm acquired Southboro Executive Place, a three-story 70,762-sf office building at 352 Turnpike Rd. here. It is more than 90% leased to tenants that include the Ford Motor Co., which holds a lease on about two-thirds of the property through 2010.

Meritage paid $9.7 million to acquire Shattuck Office Center, a three-story, 62,806-sf class A office building at 138 River Rd. in Andover. The building is 94% leased tenants including UBS Paine Webber, John Hancock, Yankee Alliance, as well as several small software development and support companies.

Meritage principal Andrew Nathan tells GlobeSt.com that the acquisitions have given the company a good niche in Boston's suburban office market."We think Boston was the last major market to turn the corner and as value added buyers, we have found it among the more compelling markets to acquire assets at attractive prices." Meritage plans a capital outlay to repair the roofs of both buildings and for additional improvements at the Andover property, which will receive landscaping, air conditioning and cosmetic improvements.

Nathan said Meritage plans to make three to five more acquisitions in the next year and is targeting Boston as one of the areas of interest. The company made its first Bay State acquisition last year when it purchased 18 Tremont St,, a historic 12-story in Downtown Boston for $37.5-million. Spaulding & Slye's Investment Sales Group, comprised of Scott Jamieson, Michael Smith, Cappy Daume, and Gail McDonough, was the sole broker.