Industrial-Portfolio-Woburn

INDUSTRIAL PORTFOLIO

64 Industrial Parkway & 1 Adele Road

FOR SALE TWO FIRST-CLASS INDUSTRIAL BUILDINGS

CONFIDENTIAL OFFERING MEMORANDUM

WOBURN, MA

303 Congress Street | Boston, MA 02210 | 617.457.3400 | www.naihunneman.com I

EXCLUSIVE SALES AGENT

03

TABLE OF CONTENTS

Investment Hightlights

04

Executive Summary

05

Property Overviews

07

Location Overview

11

Market Overview

13

Financial Analysis

19

64 INDUSTRIAL PARKWAY & 1 ADELE ROAD / WOBURN, MA

TRANSIT ORIENTED Walking distance to the Commuter Rail and Bus at the Mishawum MBTA Station

SYNERGISTIC LOCATION

HIGHLIGHTS

INVESTMENT

The properties benefit from the synergy of corporate neighbors and a wealth of retail, hospitality and shopping amenities

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EXECUTIVE SUMMARY

64 INDUSTRIAL PARKWAY & 1 ADELE ROAD AS EXCLUSIVE AGENT, NAI HUNNEMAN is pleased to offer for sale 64 Industrial Parkway and 1 Adele Road in Woburn, MA. The properties consist of two, first-class industrial buildings totaling 53,640 square feet. 64 Industrial Parkway is strategically positioned with high corporate visibility, while 1 Adele Road, situated directly behind 64 Industrial Parkway, is located on a dead-end cul-de-sac, providing tenants with additional parking and ease of deliveries/distribution. Both properties provide direct access to I-95/Rte. 128 and I-93. The properties offer convenient access to public transportation; the MBTA’s Mishawum Station is within walking distance and Woburn’s Anderson Regional Transportation Center is also located minutes away – enabling tenants to draw employees from Greater Boston and surrounding Communities. Additionally, the two properties are within close proximity to a wealth of area amenities including Target, Joe’s American Bar & Grill, Panera, Strega Prime and Marriott Fairfield Inn. 64 Industrial Parkway and 1 Adele Road offers a unique opportunity for investors to acquire two first-class industrial buildings that will allow for immediate lease-up and/or a strategic sale to an end-user. The property is being offered for sale without a formal asking price. A “call for offers” date will be scheduled in the coming weeks.

65,279 SF GROSS SQUARE FEET

53,620 SF RENTABLE SQUARE FEET

2.91 ± ACRES LAND AREA

STRATEGICALLY LOCATED in Dynamic Woburn with Excellent Highway Accessibility. 11 miles to Boston and less than 1 mile from I-95 and I-93.

VALUE-ADD OPPORTUNITY for a variety of R&D and Industrial uses.

DESIRABLE DEMOGRAPHICS

64 INDUSTRIAL PARKWAY & 1 ADELE ROAD / WOBURN, MA

07

PROPERTY OVERVIEW - 64 INDUSTRIAL PARKWAY

IP ZONING 2.01 ACRES SITE AREA

ONE STORY INDUSTRIAL MANUFACTURING BUILDING 43,120 SF RENTABLE BUILDING SIZE

PARKING:

1.30/1,000 SF (65 surface spaces)

ROOF:

Warehouse roof: Modified bitumen rubber membrane, installed 1997. Solar panels installed 2008 Drum Storage: Modified bitumen rubber membrane, installed 2016 Office & High Bay: EPDM rubber membrane, installed 2005

FLOORS:

One with mezzanine office

YEAR BUILT:

1978

ELECTRICAL:

2500 amp / 480v 3 phase / 4 wire

UTILITIES:

Electric:

NSTAR

Water & Sewer:

Town of Woburn

Gas:

National Grid

DOCKS:

2 ext

CONSTRUCTION:

Masonry

CEILING HEIGHT:

18' - 26'

64 INDUSTRIAL PARKWAY & 1 ADELE ROAD / WOBURN, MA

09

PROPERTY OVERVIEW - 1 ADELE ROAD

I-P ZONING 0.90 ACRES SITE AREA

ONE STORY INDUSTRIAL DISTRIBUTION BUILDING 10,500 SF GROSS BUILDING SIZE

PARKING:

10 Surface Spaces Available

ROOF:

Rubber Membrane 1992 (repaired in 2003) Solar panels on Roof

FLOORS:

One

DOCKS:

2 ext

YEAR BUILT:

1986

CEILING HEIGHT:

15'

ELECTRICAL:

800 amp / 480v 3 phase / 4 wire

UTILITIES:

Electric:

NSTAR

Water & Sewer:

Town of Woburn

Gas:

National Grid

CONSTRUCTION:

Masonry / Concrete

64 INDUSTRIAL PARKWAY & 1 ADELE ROAD / WOBURN, MA

NORTH TO NEW HAMPSHIRE

EXIT 36

WOBURN MALL Home to some of New England’s favorite retailers, including: Home Goods, T.J. Maxx, and Market Basket.

MISHAWUM CENTER COMMUTER STATION

5 MINUTE WALK

INDUSTRIAL PARKWAY

NEW BOSTON STREET

11

SOUTH TO BOSTON

SOUTH TO BURLINGTON / WALTHAM

64 INDUSTRIAL PARKWAY

1 ADELE ROAD

64 INDUSTRIAL PARKWAY & 1 ADELE ROAD / WOBURN, MA

13

MARKET OVERVIEW

BOSTON

4.7 MILLION POPULATION

With the ninth-largest GDP in the country, and fifteenth-largest in the world, Metro Boston is an economic powerhouse and one of the nation’s centers for education, finance, tourism, healthcare, life sciences, and technology. The region is home to 12 Fortune 500 Companies; and some of its largest employers include Brigham and Women’s Hospital, Massachusetts General Hospital, John Hancock, Boston University, and Liberty Mutual. Greater Boston boasts a population of 4.7 million – ranking it one of the largest metropolitan areas in the United States. A vibrant history, numerous cultural attractions, five professional sports teams, and some of the best shopping in the world keep more than 15 million tourists coming to the metro area annually. The 80+ colleges and universities in the region are anchored by world-class institutions such as Harvard and MIT, and provide a large pool of talented young workers who remain attracted to the area’s burgeoning innovation economy, solid employment prospects, above-average wages, and amenities. As a worldwide leader in science and tech-based industries , the metro area continues to benefit from healthcare and biotech research and development. Armed with a strong entrepreneurial spirit and highly educated workforce, prospects for growth in Greater Boston are solid.

MEDICAL 30+HOSPITALS INCLUDING MASS GENERAL, RANKED #1 HOSPITAL IN THE U.S

TOURISM 15 MILLION VISITORS ANNUALLY

EDUCATION 94.5 COLLEGE STUDENTS PER 1,000 RESIDENTS

TRANSPORTATION 5 MILLION RESIDENTS & 175 TOWNS SERVICED BY THE MBTA LOGAN AIRPORT MAINTAINS 50 NON-STOP INTERNATIONAL FLIGHTS DAILY

VENTURE CAPITAL FUNDING $3.7 BILLION (2017)

64 INDUSTRIAL PARKWAY & 1 ADELE ROAD / WOBURN, MA

WOBURN MALL

MISHAWUM CENTER COMMUTER STATION

64 INDUSTRIAL PARKWAY

5 MINUTE WALK

1 ADELE ROAD

1 MILE RING 3.14 SQ/MI

3 MILE RING 28.27 SQ/MI

5 MILE RING 78.53 SQ/MI

IN GOOD COMPANY

2017 POPULATION Total

DISTRIBUTION CENTER

5,873 87,153 203,723

DAYTIME POPULATION Total HOUSEHOLD INCOME Median

23,885 124,506 256,856

$93,944 $86,349 $95,922

9 TH BEST BOSTON SUBURB TO LIVE IN (MOVOTO REAL ESTATE)

3 RD BEST CITY TO LIVE IN MA (CREDIT DONKEY)

SILVER BIOREADY STATUS FROM THE MASS BIOTECHNOLOGY COUNCIL

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MARKET OVERVIEW

WOBURN

Woburn, a premier north suburban town, is home to more than 39,000 residents and 15,000 households. Located just 9 miles north of Boston and just south of the I-93 and I-95 intersection, Woburn offers direct access to several major highways, and is only 15 minutes from Boston and 40 minutes from Providence. Woburn’s Anderson Regional Transportation Center is a hub for public transit services in Boston’s northern suburbs. It provides Amtrak service to Portland, ME and MBTA commuter rail service to Boston’s North Station and Lowell. Bus service to downtown Boston, Logan International Airport and Manchester Regional Airport are also found here. Major Woburn employers include Marshall’s, NECC, New England Rehabilitation Hospital and Chomerics. Woburn’s industrial market consists of nearly 9.5 million square feet of space, with the warehouse subtype accounting for more than half of the total inventory. Industrial demand in Boston’s Route 128 North Submarket has been robust in recent years. Vacancies ended 2017 at just 4.5% in this market, which are among the lowest in the metro area. Looking at Woburn specifically, industrial vacancies ended the year at just 2.2%. With such tight fundamentals, local landlords have been able to push through outsized rent growth here. Since the end of 2015, lease rates for industrial space in Woburn have increased by 34%. Technology, light manufacturing, and other companies needing a small office and/or assemblage component have been key drivers for Flex/R&D space throughout the metro this cycle. So, it’s not surprising that this subtype has driven a majority of rent growth in the Woburn market over the last two years. The industrial market shows no signs of stopping, and going forward, demand should continue to outstrip supply.

ROUTE 95/128 CORRIDOR IS HOME TO 10,000 COMPANIES

VOTED SECOND MOST AFFORDABLE CITY IN THE NORTHEAST*

*SOURCE: BUSINESS WEEK

64 INDUSTRIAL PARKWAY & 1 ADELE ROAD / WOBURN, MA

COMPETITIVE SET

1

2

3

5 Commonwealth Avenue 5 COMMONWEALTH AVENUE, WOBURN Woburn Crown Life Insurance Co. Crown Life Insurance Co.

41 Atlantic Avenue 41 ATLANTIC AVENUE, WOBURN Woburn

9 Forbes Road 9 FORBES ROAD, WOBURN Woburn

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Address ADDRESS

Owner Owner

Atlantic Avenue Associates Atlantic Avenue Associates

City North Development City North Development

Howla

Building Size Direct Vacancy Building Size Direct Vacancy Asking Rent Asking Rent

69,500 SF 22,562 SF 69,500 SF 22,562 SF $10.95 NNN $10.95 NNN

30,000 SF 30,000 SF $9.50 NNN 30,000 SF 30,000 SF $9.50 NNN

76,657 SF 16,528 SF $18.00 MG 76,657 SF 16,528 SF $18.00 MG

5

4

155 West Street

45-61 Commerce Way 45-61 COMMERCE WAY, OBURN Woburn

55 Sixth Road 55 SIXTH ROAD, OBURN Woburn Adom Engineering Adom Engineering

ADDRESS

Wilmington

Howland Development Owner

Hastek, LLC Hastek, LLC 28,500 SF 3,600 SF 28,500 SF ,600 SF $13.50 NNN 13.50 N

74,041 SF 25,780 SF Building Size Direct Vacancy

56,000 SF 7,500 SF 56,000 SF ,500 SF $12.00 NNN 2. 0

N

Asking Rent

17

2

1

64 INDUSTRIAL PARKWAY

4

5

1 ADELE ROAD

3

64 INDUSTRIAL PARKWAY & 1 ADELE ROAD / WOBURN, MA

FINANCIAL ANALYSIS

ASSUMPTIONS

GENERAL INFORMATION RENTABLE AREA

10,500 SF

1 Adele Road

43,120 SF

64 Industrial Parkway

53,620 SF

Total Rentable Area

0%

% Leased

1 Adele Road and 64 Industrial Parkway are both single-tenant occupied buildings. The tenant(s) have vacated the property and the building is currently available for lease. It is assumed that the 10,500 square feet of vacancy at 1 Adele Road will be leased by one (1) Industrial tenant as detailed in the assumptions below. It is also assumed that the 43,120 square feet of vacancy at 64 Industrial Parkway will be leased by one (1) Industrial tenant as detailed in the assumptions below. All leasing costs associated with re-tenanting the buildings are assumed to be the buyer's responsibility.

LEASE-UP ASSUMPTIONS

LEASING ASSUMPTIONS MARKET RENTAL RATE (CY 2018)

1 Adele Road

64 Industrial Parkway

$12.00 PSF

$8.50 PSF

Initial: Term:

5 Years

5 Years

3.00%

3.00%

Annual Increases: Tenant Expenses:

NNN

NNN

EXPENSES PROPERTY TAXES & OPERATING EXPENSES WITHIN THE PRO FORMA ARE BASED ON THE PLACE HOLDER. 1 Adele Road

64 Industrial Parkway

$2.32 PSF $3.09 PSF $0.21 PSF

$1.78 PSF $3.09 PSF $0.21 PSF

*Real Estate Taxes:

Operating Expenses:

Insurance:

3% increase over YE 2017

3% increase over YE 2017

Expense Growth Rate:

*Woburn Commercial/Industrial rate = $24.95 per $1,000 of assessed value

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PRO FORMA

PROJECTED CASH FLOW INCOME

Annual

$/SF

$126,000 $366,520

$12.00

1 Adele Road

$8.50

64 Industrial Parkway

OTHER INCOME 1 Adele Reimbursements

$59,006

$5.62 $5.07

$218,826

64 Industrial Reimbursements

$770,352

$14.37

POTENTIAL GROSS INCOME

LESS OPERATING EXPENSES 1 ADELE ROAD Real Estate Taxes

$24,398 $32,445

$2.32 $3.09 $0.21 $1.78 $3.09 $0.21

Operating Expenses

$2,163

Insurance

64 INDUSTRIAL PARKWAY Real Estate Taxes

$76,702

$133,241

Operating Expenses

$8,883

Insurance

$277,832

$5.18

TOTAL EXPENSES

NET OPERATING INCOME

$492,520

$9.19

64 INDUSTRIAL PARKWAY & 1 ADELE ROAD / WOBURN, MA

INDUSTRIAL PORTFOLIO

64 Industrial Parkway & 1 Adele Road

INVESTMENT SERVICES

IAN MCKINLEY Senior Associate 617.457.3404 imckinley@naihunneman.com STEVE JAMES Executive Vice President 617.457.3263 sjames@naihunneman.com

GINA BARROSO Assistant Vice President 617.457.3261 gbarroso@naihunneman.com MICHAEL ALLEN Assistant Vice President 617.457.3276 mallen@naihunneman.com

303 Congress Street Boston, MA 02210 617.457.3400 www.naihunneman.com

MARKET EXPERTS

Disclaimer: Information included or referred to herein is furnished by third parties and is not guaranteed as to its accuracy or completeness.  You understand that all information included or referred to herein is confidential and furnished solely for the purpose of your review in connection with a potential purchase of the subject property. Independent estimates of pro forma income and expenses should be developed by you before any decision is made on whether to make any purchase.  Summaries of any documents are not intended to be comprehensive or all-inclusive, but rather only outline some of the provisions contained therein and are qualified in their entirety by the actual documents to which they relate.  The asset owner(s), their servicers, representatives and/or brokers, including but not limited to NAI Hunneman and their respective agents, representatives, affiliates and employees, (i) make no representations or warranties of any kind, express or implied, as to any information or projections relating to the subject asset(s), and hereby disclaim any and all such warranties or representations, and (ii) shall have no liability whatsoever arising from any errors, omissions or discrepancies in the information.  Any solicitation for offers to purchase the subject asset(s) is subject to prior placement and withdrawal, cancellation or modification without notice.

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