WP Carey has acquired a 250,813 square-foot office facility for a total acquisition price of approximately USD47 million.
The facility is located in Westborough Technology Park outside of Boston and is leased to Bose Corporation for a period of 11 years. The seller was Columbia Property Trust.
WP Carey managing director and co-head of global investments Gino Sabatini says: "The Bose building is a well-located real estate asset leased to a quality tenant; the 11-year lease and recent investment by Bose affirms their commitment to the facility. The transaction also demonstrates WP Carey's ability to work with a variety of sellers. Because of our long term income and cash flow focused strategy, we are an attractive source of liquidity to owners, developers and investors with shorter term investment horizons, providing them with timely access to capital for execution of their reinvestment strategies."
He adds that as core Boston submarkets have become saturated, tenants have begun to push further out into suburban Route 128 and 495 locations, searching for higher quality real estate with lower rents and good accessibility.
“The 495 West/Mass Pike West submarket has demonstrated an increasing level of stability in recent years, along with declining vacancy. Additionally, the submarket is home to a very large base of high-technology space and financial firms, including BNY Mellon Wealth Management, Integrated Genetics, PF PC, Inc, Amica Mutual Insurance, Astra Zeneca and E Clinical Works," he says.