W.P. Carey Buys Class A-Office and R&D Facility for $56 Million

Sponsor of non-traded REITs W.P. Carey Inc., has acquired a LEED certified, Class A-office R&D facility leased to Schneider Electric USA, Inc. The 235,943 square foot facility, located outside of Boston, Massachusetts, was purchased for $56 million.

“This investment represented an opportunity to acquire a newly renovated Class-A, LEED certified facility that is critical to Schneider Electric’s U.S. operations. Working with an established local developer, W. P. Carey secured a solid income-generating asset for our owned real estate portfolio. Because our strategy is to generate income and cash-flow over the longer term, we are an attractive source of liquidity for owners, developers and investors with shorter term investment horizons and the desire to recycle their capital,” commented Jason Fox, Managing Director and Co-Head of Global Investments for W.P. Carey in a statement.

The building, Schneider’s only research facility in the U.S., is leased for 15 years to the energy management and efficiencies company. They have invested significantly to improve energy consumption and as a result, expect to reduce energy and operational costs by 30%. 

Schneider relocated over 800 employees in order to have them work from this location, its U.S. headquarters.

The property is situated near major highways and is located in a 900,000 square foot, six building office park outside of Boston making it accessible for employees that commute from north, south or west of the city.

“The asset is positioned in the Route 495 North East office submarket, which has witnessed tightening vacancy and positive net absorption in 10 of the past 12 quarters. We have also seen significant momentum just south in the Burlington/Waltham areas, as market fundamentals continue to tighten north of Boston,” added Fox.