WESTBOROUGH, MA—Ferris Development Co. has acquired a two-building office campus here for $24.5 million. The Marlborough, MA-based real estate development company acquired the property from Deutsche Asset & Wealth Management.
The 4 & 8 Technology Drive buildings feature a total of 220,000 square feet of Class A office and research and development space. The complex is adjacent to Route 9 in the Westborough Technology Park and is located less than two miles from the Massachusetts Turnpike. 4 Technology Drive was built in 1992, while 8 Technology Drive was built in 1988.
DTZ Boston's executive managing director Dave Pergola, senior managing director Brian Doherty, associate Colleen Carey and financial analyst Jenna Skaar represented the seller and procured the buyer in the transaction. David Ferris, president and CEO, and Jennifer Wren, asset manager, negotiated the transaction for Ferris Development.
Pergola tells Globest.com that the building was 98% leased at the time of the sale and had a total of seven tenants. Among the major tenants include: Kiva Systems, a wholly-owned subsidiary of Amazon.com, which currently occupies 30,000 square feet; Zensar Technologies, which leases 52,000 square feet and information technology firm Simplivity, which currently occupies 55,000 square feet, but plans to take over an additional 28,000 square feet at the property that current tenant Arris is moving out of. A key driver in the deal was accommodating Simplivity's additional space needs at the property, Pergola notes.
The building attracted significant interest. “We marketed it for about four or five weeks and held multiple rounds of bids,” Pergola says, with Ferris eventually winning the bid. Ferris Development also owns 1 Research Drive in Westborough, a four-story, 283,797-square-foot office building located within Westborough Business Park.
He adds that while the bidding did not include a starting or asking price, the eventual sale price was right in the middle of the range DTZ had advised the seller it would likely trade for.
The new ownership is planning some capital improvements to its newest asset, including some cosmetic changes to the lobby and common areas. Pergola says that the office market in Westborough has been very tight with tenants having a difficult time finding available space.
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