Hendrie Lane Capital, V12 Investments, and The Zaro Group Secure $43.5 Million Acquisition of Advanced Manufacturing Portfolio in Andover, MA
In a significant move, Hendrie Lane Capital, V12 Investments, and The Zaro Group have announced the acquisition of a substantial research and development and advanced manufacturing portfolio located at 3 & 6 Riverside Drive in Andover, Massachusetts. This impressive property spans 170,771 square feet and is situated on a generous 16-acre lot. The total investment for this deal is estimated at $43.5 million, marking a noteworthy stamp in the landscape of industrial real estate transactions. The seller of this prime asset was Ciminelli Real Estate Corporation.
This acquisition is particularly noteworthy, as it represents the first step under Hendrie Lane Capital's new investment strategy focusing specifically on R&D and advanced manufacturing properties within prominent markets such as Greater Boston, the New York Tri-State area, Washington D.C., the San Francisco Bay Area, and North Carolina's Research Triangle. According to Tony Calabrese, Principal at Hendrie Lane Capital, the Riverside Drive property was selected due to its quality, strategic location, and long-term leasing arrangements with established tenants. The property is fully leased to a distinguished lineup of companies, including Fishman, known for its renowned line of acoustic guitar amplifiers, along with NEOLab, Physical Sciences, Inc., and SciAps, three of whom have made Riverside Drive their operational headquarters.
The strategic importance of this deal cannot be overlooked. As articulated by Brian Appelman, Managing Partner of V12 Investments, the Riverside properties 'naturally extend' their existing portfolio of manufacturing and R&D facilities within the region. This deal aligns seamlessly with their ongoing strategy of investing in specialized, mission-critical properties. Calabrese expressed optimism about the future of R&D and advanced manufacturing real estate, highlighting a sustained growth trend that is expected to draw institutional capital. He noted that the limited supply of existing facilities, combined with rising construction costs, reinforces the stability and growth potential of this asset class.
Notably, the Greater Boston North area has seen a trend where a significant number of industrial properties have been repurposed for laboratory uses or have converted to Good Manufacturing Practice (cGMP) spaces, making any new construction exceedingly costly. Therefore, Hendrie Lane, V12, and The Zaro Group are strategically positioned to leverage the existing demand in this sector. The acquisition strategy is also designed to enhance cash flow immediately, owing to the long-term contractual income from current tenants whose occupancy is secured by below-market rents in comparison to market standards.
Hendrie Lane Capital's robust history of investing spans a variety of property types including office, retail, and multifamily, but with this acquisition, there's a discernible pivot towards R&D and advanced manufacturing. The firm’s collaboration with healthcare investment specialists is further indicative of its adaptive strategy, enhancing their reach into growing sectors.
The location at Riverside Drive offers significant logistical advantages, being just 25 miles north of Boston with easy access to major highways such as Interstates 93 and 495. This not only enhances connectivity but also allows tenants to tap into a vast labor pool across Greater Boston and Southern New Hampshire. Consequently, the acquisition situates Hendrie Lane and its partners within a high-demand geographic cluster that's ripe for tech and life sciences companies, thereby promising high growth potential in rent prices as market conditions continue to evolve.
The transaction was brokered by JLL, with Scott Carpenter representing the seller. The financing arrangement of $28.6 million was led by the Capital Markets team at JLL, comprising Andrew Gray, Hugh Doherty, and Emily Fuller, who facilitated funding from Washington Trust Bank.
This acquisition marks a promising future for Hendrie Lane Capital, V12 Investments, and The Zaro Group as they venture into the growing sectors of advanced manufacturing and R&D, positioning themselves to capitalize on the predictable growth anticipated in this area. With their commitment to enhancing the operational capabilities of their tenants, this partnership aims to foster innovation and growth in Andover, MA, an area that continues to thrive as a hub for technology and advanced manufacturing ventures.
This acquisition is particularly noteworthy, as it represents the first step under Hendrie Lane Capital's new investment strategy focusing specifically on R&D and advanced manufacturing properties within prominent markets such as Greater Boston, the New York Tri-State area, Washington D.C., the San Francisco Bay Area, and North Carolina's Research Triangle. According to Tony Calabrese, Principal at Hendrie Lane Capital, the Riverside Drive property was selected due to its quality, strategic location, and long-term leasing arrangements with established tenants. The property is fully leased to a distinguished lineup of companies, including Fishman, known for its renowned line of acoustic guitar amplifiers, along with NEOLab, Physical Sciences, Inc., and SciAps, three of whom have made Riverside Drive their operational headquarters.
The strategic importance of this deal cannot be overlooked. As articulated by Brian Appelman, Managing Partner of V12 Investments, the Riverside properties 'naturally extend' their existing portfolio of manufacturing and R&D facilities within the region. This deal aligns seamlessly with their ongoing strategy of investing in specialized, mission-critical properties. Calabrese expressed optimism about the future of R&D and advanced manufacturing real estate, highlighting a sustained growth trend that is expected to draw institutional capital. He noted that the limited supply of existing facilities, combined with rising construction costs, reinforces the stability and growth potential of this asset class.
Notably, the Greater Boston North area has seen a trend where a significant number of industrial properties have been repurposed for laboratory uses or have converted to Good Manufacturing Practice (cGMP) spaces, making any new construction exceedingly costly. Therefore, Hendrie Lane, V12, and The Zaro Group are strategically positioned to leverage the existing demand in this sector. The acquisition strategy is also designed to enhance cash flow immediately, owing to the long-term contractual income from current tenants whose occupancy is secured by below-market rents in comparison to market standards.
Hendrie Lane Capital's robust history of investing spans a variety of property types including office, retail, and multifamily, but with this acquisition, there's a discernible pivot towards R&D and advanced manufacturing. The firm’s collaboration with healthcare investment specialists is further indicative of its adaptive strategy, enhancing their reach into growing sectors.
The location at Riverside Drive offers significant logistical advantages, being just 25 miles north of Boston with easy access to major highways such as Interstates 93 and 495. This not only enhances connectivity but also allows tenants to tap into a vast labor pool across Greater Boston and Southern New Hampshire. Consequently, the acquisition situates Hendrie Lane and its partners within a high-demand geographic cluster that's ripe for tech and life sciences companies, thereby promising high growth potential in rent prices as market conditions continue to evolve.
The transaction was brokered by JLL, with Scott Carpenter representing the seller. The financing arrangement of $28.6 million was led by the Capital Markets team at JLL, comprising Andrew Gray, Hugh Doherty, and Emily Fuller, who facilitated funding from Washington Trust Bank.
This acquisition marks a promising future for Hendrie Lane Capital, V12 Investments, and The Zaro Group as they venture into the growing sectors of advanced manufacturing and R&D, positioning themselves to capitalize on the predictable growth anticipated in this area. With their commitment to enhancing the operational capabilities of their tenants, this partnership aims to foster innovation and growth in Andover, MA, an area that continues to thrive as a hub for technology and advanced manufacturing ventures.
Topics Consumer Products & Retail）
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