Baltimore, MD – Alex. Brown Realty (ABR) has entered into a joint venture with Hall Royce, LLC to acquire 95 Shawmut Road, a flex/industrial facility in Canton, Massachusetts. ABR Chesapeake Fund IV, a value-added real estate fund sponsored by ABR, invested $3.0 million in the venture.
The single-story building was constructed in 1982, renovated in 2008 and includes approximately 83,479 square feet. The facility is located approximately 15 miles southwest of the Boston, adjacent to I-95 interchange.
The joint venture acquired the property through discounted note payoffs to both the first mortgage lender and the mezzanine lender. “The acquisition is a great off-market opportunity to acquire a performing asset at an attractive basis due to the lenders’ distress,” stated Tom Burton, ABR’s CIO and COO. “Partnering with Hall Royce allowed us to a complete extensive due diligence, while still acquiring the property at a 52% discount to the original basis.”
“We see great potential in this property’s ability to produce a steady income stream,” said Denny Hall, co-founder of Hall Royce. “Operations have stabilized and occupancy is currently at 82%. We are actively sourcing a tenant for the last remaining vacancy at the property.” Mr. Hall also noted that they will aggressively manage tenant rollover. In addition, the joint venture plans to increase the property’s parking capacity to satisfy current and prospective tenant needs.
Financing will be obtained post-closing from East Boston Savings Bank.
Alex. Brown Realty (ABR) is a privately owned real estate investment manager organized in 1972 and headquartered in Baltimore, Maryland. ABR co-invests with joint venture partners in a broad spectrum of property types located throughout the United States. www.abrealty.com
Hall Royce, LLC is a Boston-based real estate investment firm organized by Dennis Hall and Adam Berger, two long-time participants in the Boston commercial real estate market. www.hallroyce.com