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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