Suburban Office-Tech Center Property Acquired by RJ Kelley

WAKEFIELD, MA—A fully occupied office-tech building in suburban Boston has changed hands in a $31.1-million deal. The trade nets the seller Digital Realty Trust of San Francisco a gain of approximately $10 million.

Digital Realty, a data center and co-location solutions provider, sold 100 Quannapowitt Parkway in Wakefield, MA to RJ Kelley Co. of Burlington, MA. The sale of the 168,000-square-foot building generated net proceeds of $29 million, according to JLL Capital Markets, which represented Digital Realty Trust in the transaction.

The property is part of the two-building, 387,000-square-foot 100-200 Quannapowitt Parkway office and technology center. The property is one-half mile from Route 128, two miles from the I-93 interchange, adjacent to Lake Quannapowitt and 13 miles outside of the City of Boston.

The 100 Quannapowitt building is 100% occupied by eight tenants. Digital Realty acquired 100 and 200 in 2004. JLL's managing directors Frank Petz and Jessica Hughes, vice president Robert Borden and analyst Charles Luce represented Digital Realty Trust in the transaction. The recent deal was announced by JLL Capital Markets. Representatives from Digital Realty and RJ Kelley could not be reached for comment at press time.

At present it is not believed the 200 Quannapowitt Parkway building is on the market for sale. The 100-200 Quannapowitt Parkway complex also features jogging trails, a cafeteria, fitness center, locker rooms, and an employee basketball court.

JLL's Borden says that investor interest was strong in the 100 Quannapowitt Parkway building. Petz of JLL adds, “This offering gave investors the unique opportunity to purchase a strategically located asset in the strong North market with 100% occupancy, stable contractual cash flows, and below market rents in-place providing upside potential.”

Back in July, Digital Realty Trust made national headlines when it announced it was significantly expanding its co-location footprint with the purchase of New York City-based Telx Inc. from private equity firms ABRY Partners and Berkshire Partners. The deal, valued at $1.886 billion, closed in October of this year.