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CANTON, MA-A local investment group pursuing commercial real estate regionally has landed a 55,000-sf flex/office building here for $6.2 million. An affiliate of Waltham-based Commonwealth Property Group acquired 5 Campanelli Circle from CGI Properties, which bought the two-story structure for $4.1 million in 2000.

“We really like it as a long-term hold,” explains CPG COO Doug McGregor. The buyer was drawn by the presence of Xerox Corp. as anchor tenant and the overall quality of the asset, he says, plus “it has a very good occupancy history and is well located just off Route 24.” Physical features include 14.5-foot clear ceilings, ribbon windows and a pair of tailboard loading docks.

The off-market opportunity was brought to CPG by Lincoln Property Co. VP Gian Starita tells GlobeSt.com that the arrangement met the objectives of both parties, with the seller expecting to use the proceeds for a retail investment. “Everyone got what they wanted,” relays Starita, who was joined by Lincoln colleague Ned Halloran in representing the seller and securing the buyer. As the new year commences, Starita says he is encouraged by the level of activity, especially in the wake of a market slowdown for property sales late in 2007. “We’re going to be busy,” he predicts of the first quarter.

CPG is among the players scanning New England for investments, says McGregor, who reports that the company’s principals have a deep pool of experience in various product types, including residential and retail that extend beyond the Northeast. As such, the firm is able to consider a range of options. “We’re just looking for smart opportunities,” says McGregor. In the case of 5 Campanelli Circle, CPG feels especially comfortable due to the relative lack of competing flex product in the area, he says. That confidence is already being rewarded, with CPG able to fill one block of space while negotiations for the sale were ongoing. McGregor says interest in the remaining 7,000 sf is encouraging as well.

According to year-end 2007 figures from Jones Lang LaSalle, the suburban South submarket where Canton is located has 3 million sf of flex space, the second lowest inventory among seven submarkets save for 2.9 million sf in Interstate 495 South. The South also has the second lowest flex vacancy rate at 13.5%, although 2007 was a sluggish year, with JLL reporting 37,000 sf of negative net absorption for the year in that submarket.

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