Boston-based real estate private equity firm Rockpoint recently announced the acquisition of a distribution center in what reportedly marked the largest Central Massachusetts property transaction since 2020, when the Staples headquarters in Framingham sold for $165 million.
Completed in 2023 and incorporating roughly 646,000 square feet of class A industrial space, the property claimed an estimated $185 per square foot, as Rockpoint reportedly paid $120 million for the asset.
“As we grow our industrial portfolio, this newly constructed, high-quality property represents a compelling investment opportunity in a high barrier-to-entry market that we know well,” said Fred Borges, senior managing director at Rockpoint. “Greater Boston has experienced consistent industrial rent growth, driven by strong demand for preeminent space and a range of factors limiting the production of new supply, including a limited number of suitable, well-located sites.”
Located on a 70-acre site that is situated on Uxbridge, Sutton, and Douglas land, the industrial complex is about halfway between Providence, Ma., and Boston, roughly an hour away form each. The location comes with convenient access to primary distribution corridors across the state of Massachusetts, as well as to the surrounding workforce markets.
The property features ample parking space, outdoor storage, and built-in flexibility that can accommodate both single- and multi-tenant configurations. Roughly 73% of the space is occupied with a long-term lease since 2023, while the unleased space remains in shell condition and comes with adjacent outdoor storage and a parking field.
Rockpoint’s property service affiliate Rockhill Management will provide property management services to the Greater Boston distribution center.
“Uxbridge Distribution Center is well designed, with the flexibility to meet the needs of today’s industrial businesses and to accommodate a wide range of applications,” said Ben Harris, head of Rockpoint Industrial. “The Rockpoint and Rockhill teams look forward to building value for this property and serving its tenants.”
At the close of 2024, the Boston industrial market had nearly 1.9 million square feet of industrial space under construction and asking rents. According to the latest CommercialEdge national industrial report, this was on the lower end of the industrial supply pipeline tally, which was dominated by Phoenix (more than 22 million square feet of industrial space under construction), Dallas (nearly 19 million square feet), and Houston (a little more than 12 million square feet).
At the same time, Boston was among the priciest markets in terms of average in-place rent ($11.01 per square foot), as well as regarding the lease spread ($2.04 per square foot premium).
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