YORK BUSINESS CENTER
Sold Asset – Value Add Excess Corporate Facility
1.5 million SF bulk distribution facility
- York Business Center is a 1.5 million SF distribution facility that was acquired vacant in 2002 at a purchase price of $9M ($6 PSF). The property was acquired in a joint venture with a strategy to redevelop and reposition the facility as a bulk distribution center offering a central location with easy access to East Coast markets.
- During the acquisition process, New Boston identified a major national tenant, RR Donnelley, to lease a substantial portion of the property, reducing the lease-up risk of the investment.
- New Boston invested $35M of improvements in the former Caterpillar manufacturing and distribution facility and significantly leased up the property within its five-year hold period.
- New Boston leased nearly 1 million SF of space in 2007 alone, led by a ten-year, 686,000 SF renewal/expansion from tenant R.R. Donnelley, and almost 300,000 SF in expansions and new leases.
- In January 2008, with the asset 91% occupied, New Boston sold the asset for $70M ($47 PSF).
- New Boston also added significant value through subdividing adjacent land parcels. Capitalizing on the growth of the retail segment in the immediate area, New Boston sold a 12.3-acre parcel to Furniture Row, a Denver-based furniture store chain, for $3.2M in March 2008.