Insurer's MA HQ Trades to W. P. Carey

QUINCY, MA-W. P. Carey Inc. said Wednesday that it had acquired the corporate headquarters for the Arbella Insurance Group here. The net lease REIT did not identify the seller in the $26-million deal for the five-story property at 1100 Crown Colony Dr.; industry data show it was Denver-based Dividend Capital Total Realty Trust, which bought it in in 2010 from iStar Financial for $14 million as part of a 33-property portfolio.

A property and casualty insurer with a regional focus, Arbella has been the sole tenant at the 132,000-square-foot 1100 Crown Colony since 1996. Part of an upscale office park 11 miles south of downton Boston's financial district, it's currently leased to Arbella through 2027.

In a release, Jason Fox, managing director and co-head of global investments at W. P. Carey, spells out the ways in which the deal ticked off the boxes. “This acquisition represented the opportunity to invest in an attractive real estate asset leased to a credit rated tenant on a long-term basis,” says Fox. “With an A- rating from A.M. Best and a BBBpi credit rating from Standard & Poor's, Arbella has a solid financial profile. Combined with the building's convenient location, easy accessibility and upscale amenities, the investment is consistent with our strategy of generating stable cash flow and long term value for our stockholders.”

The office park in which Arnella is based includes the Boston Marriott Quincy hotel, a medical office building and a daycare center. It's located adjacent to the MBTA's Quincy Adams Red Line subway offering public transportation to commuters from the Boston area.