California-based real estate investment firm, Berkeley Partners, has made a significant move in the Greater Boston industrial market, acquiring the Brigham Business Park in Marlborough for a notable $30.2 million. This acquisition underscores the continued robust demand and investor confidence in the Boston suburbs’ industrial sector.
Property records reveal that Berkeley Partners purchased the three-building industrial park, located at 19, 41, and 53 Brigham Street, from an entity associated with Stockbridge Real Estate. Stockbridge Real Estate had previously acquired the properties in 2019 for $18.1 million, demonstrating a considerable appreciation in value over the past few years.
The Brigham Business Park currently houses a diverse range of tenants, including New England Hydroponics, Hi-Tech Sound, Hubley Painting & Carpentry, and Ambri Inc. This acquisition adds to Berkeley Partners‘ already substantial portfolio in the Greater Boston area, which now encompasses 39 properties totaling 4.2 million square feet. Their existing holdings include notable industrial assets such as a 162,000 SF building in Medway and an 87,000 SF property in Walpole, as listed on Berkeley Partners‘ official website.
The Metro West submarket, where Marlborough is situated, experienced a strong finish to 2023, contributing to the overall health of the Greater Boston industrial market. According to CBRE’s Q4 Industrial report, Metro West saw 423,000 square feet of leasing activity in the fourth quarter alone, with a full-year net absorption of 401,000 square feet. This robust activity is further highlighted by significant lease renewals in the submarket, such as Curriculum Associates’ 140,000 SF lease in Littleton and Columbia Tech’s 74,000 SF lease in Westborough.
The industrial sector in Greater Boston boasts a tight availability rate of 7.1% at the end of last year, with Metro West even tighter at 5.6%, significantly lower than other commercial real estate sectors like office and life sciences. While industrial investment sales have seen a general slowdown due to tighter lending conditions and higher interest rates, significant transactions still occurred in the last quarter. These include Westbrook Partners’ large $227.8 million portfolio acquisition and Oliver Street Capital’s $54 million purchase in Stoughton, indicating continued investor interest in prime industrial assets.
This acquisition by Berkeley Partners further solidifies their position as a major player in the competitive Boston industrial real estate landscape and highlights the enduring appeal of well-located industrial parks in suburban markets like Marlborough.
