CRRI, NatDev Buy 25 Research Dr. in Westborough; JLL Brokers $20.1 Million Sale

WESTBOROUGH, MA—As infill sites go, they don’t come much bigger or more coveted than 25 Research Dr., and after a lengthy marketing effort, the 68.4-acre former National Grid campus has been acquired by Charles River Realty Investors and National Development. Marketed by Jones Lang LaSalle, the 282,000-sf property that also encompasses 29 Research Dr. traded for a total of $20.1 million, with People’s United Bank providing $15.8 million in financing.

“We’re happy . . . it has closed,” National Development Director of Acquisitions Ed Marsteiner tells The Real Reporter just after his firm and CRRI took ownership of the campus that attracted a multitude of prospects lured by a prime location at the juncture of Interstate 495 and Route 9 near the Massachusetts Turnpike, plus the potential to add another 500,000 sf of commercial build out. The struggling Interstate 495 Central submarket does not presently lend itself to new construction, but market watchers spoken to concur that 25 Research Dr. is a prime candidate to see further inventory added when conditions do improve, especially given the proactive partnership now in control, a tandem responsible for millions of square feet of commercial space developed throughout Greater Boston. Meanwhile, properties surrounding 25 Research Dr. have lured a number of powerful neighbors, including Bose, EMC Corp., Genzyme, State Street Bank Corp. and the TJX Cos.

JLL was not immediately available to discuss the trade that commenced when National Grid announced its intentions to relocate operations to Waltham in 2008, with the utility now operating from the Reservoir Woods Office Park overlooking Route 128. The asset became even more valued when BJ’s Wholesale Club opted to relocate its headquarters from Framingham and Natick to 25 Research Dr., at which the firm occupies 88 percent of the leasable space in a commitment that extends to 2026. That
provides reliable cash flow while the market moves to a recovery.

National Grid and its predecessor, Massachusetts Electric Co.. had controlled 25 Research Dr. since the 1960’s, with an overhaul of the physical plant in 2001. The most prominent structure on the campus is a six-story office building. In its marketing materials, JLL said the asset would likely trade well below replacement cost, although an asking price was never set. JLL professionals representing National Grid in the sale included Scott J. Jamieson, Michael G. Smith and Phil DeSimone.

The transaction is among the largest in Massachusetts beyond Route 128 this year. In addition to office space, 25 Research Dr. can also accommodate such uses as a hotel, industrial and medical development. Having just acquired the asset, the new ownership has not expressed any specific plans. According to Marsteiner, however, “we’re going to get right to work on it.”