Northborough, Franklin warehouses sold for $50.5M
Courtesy of Transwestern RBJ
55 Lyman St., a 260,760-square-foot warehouse in Northborough, was sold for $26.84 million to New York Life Real Estate Investors July 24, along with a warehouse in Franklin.
The real estate arm of America’s largest mutual life insurance company purchased warehouses in Northborough and Franklin for $50.54 million.
Deed records indicate that Reep-Ind, affiliated with New York Life Real Estate Investors, bought the fully occupied buildings at 55 Lyman St. in Northborough and 20 Freedom Way in Franklin on July 24 from The Realty Associates Fund, an affiliate of Boston-based TA Associates Realty.
The 260,760-square-foot Northborough warehouse was sold for $26.84 million, and is fully occupied by McKesson Medical-Surgical and FedEx Ground. The 233,688-square-foot Freedom Way warehouse, part of the Franklin Industrial Park, was purchased for $23.7 million and has medical supply distributor Owens & Minor as its sole tenant.
All the tenants have long-term leases, said New York Life spokeswoman Jacqueline Meere, so no immediate leasing will be necessary. These are the first properties in Central Massachusetts owned by New York Life, according to Meere.
The Franklin warehouse was built in 2003, while the Northborough warehouse was built in 2005, according to municipal property records. Both are up to Class A standards, Meere said.
The Franklin site features high ceilings and 32 loading docks, while the Northborough site is designed for distribution and sits near Exit 23C off Interstate 495.
TA Associates purchased the Franklin warehouse in October 2007 for $20.3 million and the Northborough warehouse in January 2011 for $18.3 million, according to municipal records.
The value of both sites has increased due to Owens & Minor’s boosting of its Franklin lease from less than 48,000 square feet in 2010 to the entire building today, as well as McKesson’s expansion of its Northborough lease by 50,000 square feet in July 2013.
TA Associates has been a major seller as of late, spinning off a Southborough office building in December for $9.2 million and a Marlborough office building in April for $11.75 million. The company didn’t return a call for comment.
Boston-based Transwestern RBJ represented the seller, procured the buyer, and will continue in its role as leasing agent for the distribution centers.
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