Vacant Canton industrial building acquired for $5.8 million, capital improvements planned

Calare Properties has acquired Canton, MA’s 15-21 University Road, a 103,200-square-foot industrial/flex building located on 17 acres in one of Greater Boston’s hottest industrial submarkets, for $5.8 million. The sale amounts to about $56 per square foot. The building was delivered vacant, presenting Calare with the opportunity to add value by upgrading the property and re-leasing at market rates. “Through a strategic capital improvement program designed to upgrade property systems and infrastructure, we are confident of the opportunity to drive significant capital appreciation,” said Bill Manley, CEO and CIO of Calare, in a prepared statement. Calare plans to improve the property with new roofing, HVAC upgrades, re-paved parking areas, updated landscaping and cosmetic enhancements, and is also developing plans to install rooftop solar technology.

15-21 University Road is located within the Greater Boston area’s second-largest industrial submarket, Route 128 South, a district with a low supply of available space and a vacancy rate of only 7.9% as of the third quarter of 2017. Demand for space in the submarket is rising steadily, with rents increasing $7.24 per square foot over the last quarter. Calare has enlisted JLL to lease the property and has already received numerous inquiries from potential tenants. “The location and accessibility are almost impossible to replicate in the 128 South market,” said Todd Barclay, VP of Acquisitions at Calare, in a prepared statement. “The building lays out very well for one or multiple tenants and given the low supply of available product, we expect significant tenant interest in property.” 15-21 University Road is located just 15 miles from Boston, a short drive from Interstates 95/128 and 93 as well as Amtrak and MBTA commuter rail service. The two-million-square-foot University Station mixed-use development is located minutes away.

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