89 Cross Street
Introduction
Equity Industrial Partners (EIP), a renowned industrial real estate investment and development firm, took on a significant challenge when they acquired the property at 89 Cross St, Holliston, MA in 2014. The property, purchased from a user owner, comprised approximately 220,000 square feet of space that was becoming vacant and in need of repositioning. EIP's strategic vision and expertise in industrial real estate allowed them to overcome hurdles and achieve remarkable success with this property.
Acquisition and Initial Leasing Triumph
Upon acquiring the property, EIP faced the task of repositioning the vacant space to attract new tenants. At the time of purchase, ERI was an existing tenant occupying 125,000 square feet of the space. In 2015, EIP executed a significant lease agreement with TSG, also known as Pure Hockey, to take over 175,521 square feet of the property. To accommodate the new tenant's requirements, EIP invested $760,000 in Tenant Improvement work, including the build-out of office space, a new entryway, and HVAC upgrades. Additionally, EIP spent $600,000 in Base Building work to white box the space, enhancing its appeal to potential tenants. The Base Building work also involved crucial upgrades, such as asphalt paving, roof replacement/repair, and exterior painting.
Expanding Tenancy and Challenges Faced
In the same year, 2015, EIP secured another lease agreement with Advance Warehousing for 44,914 square feet of space at the property, further solidifying its position as a sought-after industrial location.
However, in 2020, a fire broke out in the ERI space, leading to significant damage. The incident prompted EIP to embark on a $7 million rebuild of the 125,000 square feet ERI space, incorporating state-of-the-art safety measures such as an ESFR system.
Triumph over Adversity and Ongoing Success
Despite the challenges posed by the fire incident, EIP's commitment to excellence prevailed. The rebuild was a testament to the firm's dedication to ensuring the property's safety and the satisfaction of its tenants. The combination of strategic leasing decisions, substantial property enhancements, and quick action in response to unforeseen events showcased EIP's unparalleled ability to navigate the complexities of industrial real estate development.
Conclusion
The case study of 89 Cross St, Holliston, MA, exemplifies Equity Industrial Partners' prowess in industrial real estate investment and development. The acquisition, repositioning, and leasing success at this property demonstrate EIP's dedication to creating vibrant industrial spaces that meet the needs of both landlords and tenants. Despite the challenges faced along the way, EIP's expertise and proactive approach allowed them to overcome adversity and maintain the property's status as a prime location for industrial tenants. The triumphant rebuild after the fire incident further solidified EIP's reputation as a leading player in the industrial real estate market, attracting tenants and investors alike.
