1440 Main St, Waltham MA
A 66,000SF Lab, medical and general office use building. Waltham has become a highly desired location for bio-tech tenants who want a known location outside of Cambridge, MA. The investment thesis recognizes the transformation of Waltham over the past decade into a destination location for work, leisure and residential needs. This is a core-plus investment with some value-add upside potential.
45 South St, Hopkinton, MA
A Flex building, with 66,000SF, located at the interchange to I-495 and a few miles south of I-90. The basis is $90PSF and the building is 100% occupied. This was purchased at a ~9% cap rate. Cashflow is strong and this is a long term hold. Gross yield is 12%+.
321 Fortune Blvd, Milford, MA
This is a 43,000SF medical office/office building. It has 21,500SF of long term medical tenants, back to 1996. Most tenants are not represented by brokers, so leases extend without LCs. The second floor tenant (21.5KSF) owns properties nearby and recently signed a 7.5 year extension because this is considered a strategic location. Price paid was ~8.5% cap rate at a $135PSF basis. This price is significantly below replacement cost. Cash on cash is strong. Medical tenants tend to be sticky, meaning they dont leave. Gross yield trailing 12 months 13.4%
975 General Edwards Hwy, Sharon, MA
This is a 2000SF retail store that was purchased at a 8.5% cap rate. Cashflow is stable, but following LED, this will be converted to a higher/better retail use as the location is at a highly valued signalized intersection. (Dunkin Donuts wanted the location but a lease buyout agreement could not be reached 2 years ago). Gross yield trailing 12 months 12.9%
Walpole Innovation Center, Walpole MA
WIC is a 75,000SF mixed use building consisting of office, warehouse, flex and executive suites. There are 61 tenants and space demises from 150SF to 4000SF. Most of our leasing is done without leasing commissions. Much of our space is taken as-is or with nothing more than paint and carpet for TI. This maximizes cash on cash yield. Multi tenant diversity mitigates vacancy risk. Basis at ~$105PSF is well below replacement cost. Price paid was ~8.7% cap rate. Gross yield trailing 12 months 12.9%
27 Strathmore, Natick, MA
This is a 20,000SF executive suites building purchased for $100PSF in a business park where properties are selling for as much as $200PSF+. This is an example of a value add through lease-up deal. This building was sold in April 2015 and resulted in a 18% IRR.
25 South St, Hopkinton, MA
This is a 56,000SF Flex building in a superior location. It is demisable to ~3000SF, making it extremely flexible for its market segment. Multi tenant diversity mitigates vacancy risk. Price paid was 9% cap rate and building is 100% occupied at purchase. Basis is $90PSF which is below replacement cost. Location is in an area where everything happening around is going to higher/better use, making us more valuable. This is a long term hold with strong cashflow and stability. Gross yield is 12%+
1208 VFW Parkway, Boston MA
1208B is a 40,000SF mostly medical office building. This value-add property was 90% leased at acquisition. Significant upside exists as we work to re-position an existing tenant going through a short patch of growing pains. We were comfortable with this because we had the exact same situation with a similar tenant in another property, which gave us the confidence to work with this situation while other investors shied away. In addition, there is a large non-medical tenant (10% of occupancy) that is significantly under market. Converting this tenant to market or, better yet, replacing with a medical tenant will create significant value accretion for the property. The building has good diversity and is in superb condition (2004 construction). Basis at ~$175PSF is below replacement cost in a tight market. Price paid was 7.5% cap rate. Expected strong cash on cash and IRR exceeding 30% on a 3-5 year hold.
480 Neponset Street, Canton MA
The 216,869 square-foot multi-use property is uniquely able to accommodate a variety of different tenant sizes and usesm from 1,000 to 2,000 square feet and from warehouse and manufacturing to office and lab. At 92% occupancy, the Park delivers stable cash flow with upside potential. The property’s excellent highway access, walkable public transportation, and nearby amenity base are strong drivers of tenants to the Park. This is a Core-Plus investment with strong cash on cash yield.n cash yield.