LaSalle Portfolio Management expanded its logistics footprint in the United States with the acquisition of Bellingham Distribution Center, a 345,000 square foot property in the Boston area. The global real estate investment manager’s flagship institutional real estate vehicle, LaSalle Property Fund, has acquired the fully leased property in Bellingham, Mass., from the developer barings for $96.7 million, according to the Norfolk County Deeds Registry.
LaSalle has chosen a prime market for its latest addition to its industrial portfolio. “Drawn by ‘all-record’ market fundamentals,” the Greater Boston industrial market continues to be the focus of the world’s largest sources of capital, including industrial REITs, institutional pension fund advisors, private equity, life insurance companies, foreign capital distributors and ultra-high net worth investors,” according to a Q1 2022 report from CBRE.
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Located on 60 acres at 160 Mechanic St. on Interstate 495, Bellingham Distribution Center is located in the 495 South submarket, the largest industrial submarket in metropolitan Boston. General contractor Arco Building completed development of the facility, initially known as Lincoln Logistics 36, on behalf of Barings in 2021.
The state-of-the-art property offers 70 fully equipped docks and 50 trailer storage spaces and offers coveted features such as 36-foot headroom, ESFR sprinklers, LED sensor lighting and tiered windows. Construction Donnelly led the tenant fit-up, which includes 10,000 square feet of office space to accommodate break rooms and training facilities.
In August 2021, Barings and the project’s co-developer Lincoln Property Co. signed restaurant supply leader TriMark to a full-build lease of the Bellingham distribution centre. TriMark has relocated from its South Attleboro location, taking advantage of a modern option amid Boston’s aging pool of industrial properties.
The company was fortunate to acquire the property at this time, as Boston’s metropolitan industrial market was becoming increasingly tight. As noted in a 2022 Q1 report from CBRE, “Absorption and vacancy are positioned to rise and fall, respectively, as new blocks of space come in with strong pre-letting in place.”
The feeling is global
LaSalle’s purchase of the Bellingham distribution center follows a series of international additions to its portfolio. In the first quarter of 2022, La Salle acquired The Plus, a 335,800 square foot fully leased facility in Bielefeld, Germany, as well as the 1.4 million square foot Verona DC1 distribution center in Verona, Italy. The investment management firm also purchased a logistics campus in Venlo, the Netherlands, comprising eight warehouses and a 796,500 square foot logistics project.
“[Logistics] remains a pandemic winner in all geographies, with very strong occupier demand and construction cost inflation expected to drive rental growth,” according to a February 2022 report from Cushman and Wakefield.