121, 125, 135 Will Drive
Introduction
Equity Industrial Partners (EIP), a prominent industrial real estate investment and development firm, showcased their adaptive approach and strategic leasing capabilities with the successful acquisition and development of the properties at 121, 125, and 135 Will Drive in Canton, MA. This case study highlights EIP's expertise in navigating challenging circumstances, securing new leases, and executing substantial property improvements.
Acquisition and Tenant Challenges
In 2018, EIP acquired the buildings at 121, 125, and 135 Will Drive. Prior to the acquisition, the previous tenant, Big Hearted Books, held a Right of First Offer (ROFO) on the property. EIP stepped into the ROFO, but shortly after closing, Big Hearted Books filed for bankruptcy. Despite this challenge, EIP leveraged their expertise to navigate the situation effectively.
At the time of acquisition, DPI (now QCD) was already an existing tenant in the building, presenting both an opportunity and a challenge to EIP's leasing strategy.
Leasing Success with RCN
In 2018, EIP successfully signed a lease agreement with RCN, securing 41,146 square feet of space. To cater to RCN's specific needs, EIP demised the premises and separately metered the gas and electric services, ensuring efficient utility management.
Significant Improvements and Lease with DS Graphics
In 2020, EIP executed a substantial lease agreement with DS Graphics, encompassing an impressive 227,570 square feet of space. The deal included a series of property improvements to meet the tenant's requirements and enhance the overall functionality and aesthetics of the property. The improvements involved a $500,000 partial roof replacement over QCD's space, $950,000 in asphalt replacement and site work, $240,000 in dock upgrades, and a $1.2 million façade renovation. Additionally, DS Graphics received a generous $3.0 million Tenant Improvement allowance to customize the space to their specifications.
Success Story: A Vibrant Industrial Campus
The case study of 121, 125, and 135 Will Drive exemplifies Equity Industrial Partners' prowess in industrial real estate investment and development. The adaptive acquisition, strategic leasing with RCN and DS Graphics, and substantial property improvements demonstrate EIP's ability to transform properties into a vibrant industrial campus. Despite facing challenges with the previous tenant, EIP's expertise in securing new leases and executing valuable property enhancements solidifies their position as a trusted leader in the industrial real estate market.
Conclusion
Equity Industrial Partners' successful transformation of 121, 125, and 135 Will Drive into a vibrant industrial campus highlights their expertise in adaptive real estate investment and development. The strategic acquisition, successful leasing agreements with RCN and DS Graphics, and significant property improvements underscore EIP's commitment to delivering exceptional industrial spaces. By navigating challenges, securing new tenants, and investing in valuable enhancements, EIP has solidified their position as a trusted leader in the industrial real estate market, providing superior value and performance for their portfolio.
