125 Water Street, Danvers, MA

Product Type
Warehouse/Distribution

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Strategy
Mark-to-Market

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Date Purchased
April 2019

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Square Feet
120,470

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Acquisition / Sale Price
$8,000,000 / $20,300,000

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Investor IRR
51.0%

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Equity Multiple
2.7x

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Hold Period
2.6 Years

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Investment Overview

• Acquired through off-market relationship for $8mm

• High-bay (30’) property undermanaged by long-term, local owners

• Two tenants with short lease terms under two-years

• Strong location with excellent highway access in supply constrained market

Value Creation

• Signed both tenants to longer-term leases

• Constructed 4,700sf of Class-A office space in former low-ceiling area increasing rent by ~19%

• Leased additional 4,700sf of vacant 2nd floor office to adding an additional ~4% of rental income

• Financed the addition of LED lighting, new racking, and in-rack sprinklers for further interest income